Restaurant Management

How to Deliver Quality and Service in Yo Your  Restaurant When guests come to your restaurant, you should treat them as if they are friends visiting your home. Treating your guests with care and providing an exceptional place for them to enjoy a meal is part of the reason they will come back to your restaurant again. Exceptional Quality

When customers come through your doors, they expect quality in every aspect of the restaurant. Guests are looking for a value in the things they see, taste and touch, and so providing them with exceptional quality will certainly leave a good taste in their mouths. Food Quality

ood and beverages are probably the biggest indicator of quality that a customer notices. ood quality is not only important to the customers! impressions of the overall restaurant experience, but it is important for the their health, as well. Guests! health should never be compromised. "lthough "lthough not all restaurants can boast the best quality food in town, they can still take measures to ensure that food is stored and prepared safely. Take the following considerations when assuring food quality in your restaurant# ←

$e sure to follow proper first%in, first%out &'() rotation with all food products.

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*roperly label and date all food products.

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+ever serve food that has expired.

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*repare products safely, avoiding cross%contamination with dangerous bacteria or cross%contact with allergens. Wash hands before and after handling food products.

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*repare and serve foods at proper, safe temperatures.

Quality Atmosphere When guests enter your restaurant, they should feel as though they are in a special, comfortable place. Try Try these suggestions to create a superior ambience in your restaurant# ←

Make delierate choices with li!htin!" onsider your concept, and be sure the strength of the

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light suits the tone you wish to portray to your guests. #hoose music care$ully" -ake sure the volume of your music is audible but not distracting. -usic should help create the ambience rather than overwhelm it. Decorate appropriately" ecorate your restaurant with a special, unique theme or focal point.

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%eep the restaurant spotless" /ven a quick%service restaurant needs to demonstrate a high

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standard of cleanliness for customers to feel good about the quality of food. Maintain the temperature" -aintain a comfortable inside temperature in your building. 012 is usually acceptable. -inimi3e drafts or hot spots from lights as much as possible.

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Memorale Service *erhaps even more important than food quality is the service the customers experience from the time they enter the restaurant until the time they walk out the doors. "lthough restaurants thrive because of sales, the sale should never be put before the customer!s needs.

How to Speak with #ustomers 'n any restaurant or food service environment, speaking to customers should always involve the utmost respect and courtesy. This This goes for all workers, from drive%thru attendants to servers at fine dining establishments. This is rather idealistic. 4owever, restaurant workers should follow these general guidelines when speaking with customers ←

5se respectful titles, such as 6sir6 and 6ma!am.6

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$e optimistic, and speak with a smile.

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+ever interrupt or talk over guests! conversations if you can help it.

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7now your menu so you can speak intelligently to educate guests.

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8isten with respect and care to what the customer has to say.

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$e sure you ask questions to clarify a customer!s order if there is any confusion.

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$e honest and straight%forward with customers at all times, especially if there is a problem.

How to Answer the &hone in a 'usy Situation When answering the telephone in a busy restaurant, never answer with 6Thanks for calling, hold please,6 as this immediately belittles the person on the other end. 9. 'f the phone phone rings while while you are are helping helping another another guest, politel politely y ask the guest guest to excuse excuse you for a moment, then answer the phone. :. "fter "fter greeting greeting appropriat appropriately ely,, let the person person on the the other line line know you you will be able to help help them momentarily. ;. inish inish helping helping your current current guest guest and come come back to the the phone within within the the next minute minute if possible possible..

How to Serve and #lear Food
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Serve in the appropriate order" 
dining restaurants or formal banquets. 'n these dining establishments, it is appropriate to serve the guest of honor first, then the female guests and then the males. 'n less formal restaurants, it is acceptable to simply serve women before men. Serve and clear $ood $rom the le$t" 
Speed o$ Service
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 " fast%casual fast%casual pi33a pi33a place might have have a speed of service service goal of 91 minutes from from the moment the order is taken to the moment the guest receives the pi33a.  " smoothie smoothie shop or coffee coffee house might might have a more aggressive goal goal of three minutes, minutes, since these drinks require less assembly and preparation.


#arin! $or )pset #ustomers +ow and again there are bound to be problems. " customer may be dissatisfied with his meal or may find the quality to be below his standards. etaining upset customers can be a challenge. When you put in the effort and respect to recover distressed customers, you may be able to convince them to return to your establishment in the future. ? 8earn -ore

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8isten with respect and care to what the customer has to say.

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$e sure you ask questions to clarify a customer!s order if there is any confusion.

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$e honest and straight%forward with customers at all times, especially if there is a problem.

How to Answer the &hone in a 'usy Situation When answering the telephone in a busy restaurant, never answer with 6Thanks for calling, hold please,6 as this immediately belittles the person on the other end. 9. 'f the phone phone rings while while you are are helping helping another another guest, politel politely y ask the guest guest to excuse excuse you for a moment, then answer the phone. :. "fter "fter greeting greeting appropriat appropriately ely,, let the person person on the the other line line know you you will be able to help help them momentarily. ;. inish inish helping helping your current current guest guest and come come back to the the phone within within the the next minute minute if possible possible..

How to Serve and #lear Food
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Serve in the appropriate order" 
dining restaurants or formal banquets. 'n these dining establishments, it is appropriate to serve the guest of honor first, then the female guests and then the males. 'n less formal restaurants, it is acceptable to simply serve women before men. Serve and clear $ood $rom the le$t" 
Speed o$ Service
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 " fast%casual fast%casual pi33a pi33a place might have have a speed of service service goal of 91 minutes from from the moment the order is taken to the moment the guest receives the pi33a.  " smoothie smoothie shop or coffee coffee house might might have a more aggressive goal goal of three minutes, minutes, since these drinks require less assembly and preparation.


#arin! $or )pset #ustomers +ow and again there are bound to be problems. " customer may be dissatisfied with his meal or may find the quality to be below his standards. etaining upset customers can be a challenge. When you put in the effort and respect to recover distressed customers, you may be able to convince them to return to your establishment in the future. ? 8earn -ore

#ustomer #omment #ards ustomer comment cards are a great way of evaluating the customer experience. ustomer comment cards are typically set out on the table or delivered by the server at the end of the meal. ustomers can rate qualities of the restaurant, such as food presentation, menu pricing and server friendliness. ? 8earn -ore

#arin! $or )pset #ustomers in the Restaurant /ven if all food service personnel do their best to please the customers that come through their doors, not every customer will find satisfaction with the service offered. Guests usually have their reasons for complaining, but it is up to the restaurant staff to rectify the problem and make a positive lasting impression.

*hy #ustomers #omplain (ccasionally, (ccasionally, customers will find something that offends their taste and bring it up with the server or manager. This is typically due to one of the following# ←

ude servers,,'nattentive servers,,'nattentive servers,'ncorrect orders, irty dishes,irty facility

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*oor quality food and drinks

+" ,isten and Acknowled!e

When a customer has a problem, they tend to bring it up with the server, or an employee working in the ront of the 4ouse &(4) first. 't is this employee@s job to listen attentively. 4e 4e or she must find out, as politely and compassionately as possible, what seems to be the problem. This employee should take the time to hear out the issue completely before determining what can be done.
The next step is for both the server and the manager to step in and apologi3e. /ven if the offense was not intentionalAand it hardly ever isAthe apology will set the guest@s mind at ease and help to dissipate the negativity. /" Recti$y the &rolem

rom here, the server or manager must do what he or she can to fix the problem. The goal is to go above and beyond the expectation so that the guest@s distaste is transformed into contentment. contentment. This can take many forms, depending on the complaint. ←

The meal is remade and comped

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The meal is replaced and comped

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The guest is given a dessert on the house

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 " new server is assigned, assigned, if needed

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 " coupon coupon for a free meal meal is given to the guest

't always helps to compensate, or comp the food in question. 4owever, this is no substitute for top%notch customer service. /ven if a meal is compensated for a guest or a free meal coupon is given, it takes sustained attentiveness, politeness and positivity to recover the customer@s trust. 0" 1hank the 2uest

inally, it is important to thank the guest for giving you the opportunity to repair the problem. Training your servers to always thank the customers simply for coming in will do wonders. 3" #orrect the Situation

 "fter all is mended, mended, the manager manager should take the time to debrief debrief the team tactfully tactfully,, so as not not to place blame. blame. ommunicating the circumstances helps to assess the situation, preventing the same thing from happening in the future

How to Develop a Restaurant Employee Handook The employee handbook, or employee manual, is one of the most important documents your restaurant will produce. 't is one of the most effective ways of training your employees to do things correctly. The handbook establishes the policies, procedures and other components that ought to be present in any business. This article provides guidelines for creating an employee handbook for the first time, or assessing and updating your old one. +o matter how you make it, always consult with an employment lawyer or restaurant human resource professional before finali3ing and publishing your handbook. #omponents o$ an Employee Handook4 ←

isclaimer and "cknowled "cknowledgement gement

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/mployment *olicies

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Work 4ours and *ayroll

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$enefits

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 "ppearance
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$ehavior /xpectations and *olicies

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ash 4andling *olicies and *rocedures

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(perating *olicies

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4arassment *olicy

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rug and "lcohol *olicy

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4ealth and
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/mergency *rocedures

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ompany *roperty and /quipment *hy Your Restaurant (eeds an Employee Handook

There are several reasons why creating an employee manual is critical to your restaurant!s success. This document is home to your specific restaurant policies, local and federal laws, employment standards and working procedures for all areas of the restaurant. heck below for specific ways the employee manual will make your life easier. Enhance pro$essionalism"

The employee handbook shows your staff that you are serious about your restaurant, and more importantly, their performance. Bou Bou have taken time to create it and your staff needs to take serious time to read and understand it.

Answer employee 5uestions e$ore they ask"

-any employees want to know what they need to do and how to do it. " good employee handbook will cover this, so you will spend less time answering the same questions over and over. 6mprove employee con$idence"

>estaurant employees do better work when they are confident of their job requirements and the specific procedures. This translates to better customer service as well. Elevate level o$ consistency"

When you have the policies written out, you can consistently train every employee. onversely, onversely, if you need to take disciplinary action with someone, the employee handbook gives you written documentation of procedures in case of any messy legal action. *ritin! the Employee Handook

4ere are a few tips for writing the employee handbook that will make it as useful as possible for your restaurant staff#

*rite multilin!ual handooks"

'f necessary, make up employee handbooks in different languages to accommodate any non%native /nglish speakers on your restaurant staff. *rite so employees can understand"

+o need to write the employee handbook in unfamiliar jargon or legal terms. Write simply and clearly so any of your employees can understand it. "fter all, they are your main audience. &roduce speciali.ed handooks"

epending on your restaurant, you may find that handbooks for every type of employee make the most sense. 'n full service establishments, job descriptions can be very different and may require separate policies and procedures. 8imited or quick service restaurants often function just fine with one universal employee handbook. Add in$ormation as needed"

+ew situations come up, and you may need to make additions to your handbook in order to cover procedures that you feel are important enough to be in the handbook. To avoid publishing new handbooks every time this happens, print off the new procedures and hand out copies with the next round of employee paychecks. /ssential omponents of an /mployee 4andbook  "ll employee handbooks will look slightly different due to variances in concept, layout, service type, location, hours and specific policies enforced by the owner or manager. espite differences in content, the following components are important in any restaurant employee handbook.

+" Disclaimer and Acknowled!ement The disclaimer and acknowledgement section of your restaurant!s employee handbook establishes that employees have read and understand the policies, procedures, expectations and benefits outlined in the handbook. 't also asserts that the handbook does not act as an employment contract. This is especially important for states with 6at%will6 employment laws, which are laws delineating that an employment relationship can be terminated at any time, by the employer or employee, without cause or liability.

-" Employment &olicies  " section on hiring policies helps outline any state laws that apply to interviewing, hiring and otherwise bringing people to work in the restaurant. "n employee handbook needs to cover any applicable state or federal employment law, including the commitment to /qual (pportunity /mployment. 4andbooks may also include information on the following# ←

>ecruiting

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'nterviewing

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 "pplications

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$ackground checking

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inding the right people ? 8earn -ore

1ermination

'nclude policies on dismissing employees from the restaurant. $e sure to cover both voluntary and involuntary termination and what behaviors will lead directly to termination. ? 8earn -ore

/" *ork Hours and &ayroll 'n this section, discuss any labor laws that were not covered in the previous section, and to outline the expectations and procedures for employees while on the job. 'nclude the following concepts, tailored to your restaurant# ,aor laws"

8abor laws differ from state to state. 'nclude information about age requirements, work permits, overtime pay procedures or information about what work employees can safely perform while on the job. ? 8earn -ore &ayroll"

/mployees will want to know when and how they will be paid. 8et employees know when paydays occur, how they will receive their wages and if direct deposit is available. ? 8earn -ore Schedulin!"

iscuss how the schedule will be created and how often. 'nclude procedures for asking for time off, missing a shift and otherwise changing the schedule. Bou may want to cover what happens when an employee misses a shift without notice. This information will often require extra enforcement and communication in person. ? 8earn -ore

'reaks"

-ost state labor laws also include directives for employee breaks and meal periods. /mployees must be aware of their rights according to area labor laws. They should also be aware of how to clock out for a break, where they can spend the break and how many breaks they are allowed in a given shift. ? 8earn -ore 1ip reportin!"

This applies mainly to servers. -ake sure the tip%reporting policy in your restaurant is clearly communicated and enforced. 'nclude instructions on how to fill out a tip reporting sheet and potential consequences for inaccurate reporting. ? 8earn -ore *orkers7 compensation"

This section should have information on employee injuries or illness as a result of working at the restaurant. -ake employees aware of their rights and educate them about how to stay safe on the job.

0" 'ene$its /mployees want to know what benefits they are entitled to while employed at your restaurant. -ake sure they are aware of any of the following benefits your restaurant offers#

Employee meals"

/mployee meals are a common benefit in many restaurants, in which restaurant employees receive one free meal for each shift worked. ? 8earn -ore 1ime o$$"

$usinesses are typically required to provide time off to their employees when they are sick and during holidays. >estaurants, however, may employ unique policies regarding time off. $e sure to clarify your restaurant!s policies, including the following circumstances if applicable# ←

4olidays

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Cacation Time

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(vertime

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$ereavement

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-aternity 8eave

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Dury uty

6nsurance and 08+%"

 "lthough a less common benefit, some restaurant managers and workers are eligible to receive medical, dental and vision insurance as well as E197 packages. ? 8earn -ore

3" Appearance Standards $e sure to identify the proper uniform and appearance standards for every job position in your restaurant. This includes the following# ←


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5niforms

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4air 

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acial hair 

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+ails

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Dewelry

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Tattoos

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*iercings

5niform requirements will differ in just about every establishment, so make it clear what your specific standards are, including the following aspects of employee appearance# ? 8earn -ore

9" 'ehavior Expectations and &olicies 't is essential that a restaurant handbook define acceptable and inappropriate behaviors in the restaurant. When employees know their expectations and their limits, there will be fewer problems in the workplace. ? 8earn -ore

1eamwork"

/mphasi3e teamwork in your employee handbook. -ake sure that you foster an environment of trust and cooperation as much as possible. #ustomer service"

epending on your restaurant layout and service style, you may have several different employees interacting with customers for every order. -ake certain that all employees are aware of your restaurant!s customer service goals and how to exemplify them. Evaluations"

8et employees know that their performance will be periodically evaluated. These evaluations can even lead to increases in wages, if your restaurant is in a position to offer this. Rewards and discipline"

/stablishing a rewards policy and a discipline system in the restaurant will help employees understand the consequences of their behavior, whether good or bad. 'dentify unacceptable behaviors, as well as those that result in immediate termination, such as harassment. 'n addition, clarify those behaviors that will make the employees stand out as leaders. ? 8earn -ore

#on$lict resolution"

When employees show their superiors or their coworkers disrespect, the whole atmosphere of the workplace can turn sour. 4ave behavior standards and resolution practices in place for conflicts that do arise. ? 8earn -ore

:" #ash Handlin! &olicies and &rocedures -any restaurant employees will be handling cash while at work, either as a server, bartender or cashier. 4aving cash handling policies in place will help instruct employees on the proper way to handle money to minimi3e loss and maximi3e security and accuracy. ? 8earn -ore

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=" Harassment &olicy 4ave a stringent policy on workplace harassment. *rovide information about sexual harassment and other forms of workplace harassment, as well as instruction for how to avoid it, how to identify it and how to report it. Bou may even want to include a statement of acknowledgement for every employee to sign, stating that they have read and understand the no%harassment policy. These can be kept in employee files. ? 8earn -ore

+8" Dru! and Alcohol &olicy rug and alcohol abuse can occur in any restaurant. +ot only is it harmful to the employee, but it can be dangerous to those around him or her. $e sure your policies are clearly defined. This especially applies to restaurants that serve alcohol and allow employees to drink after their shifts have ended.

++" Health and Sa$ety 7eeping your restaurant staff safe on the job should your highest priority. $e sure to provide consistent, thorough training to all employees through regular staff safety meetings and on%the%job coaching. 4ave proper labels and posters in place to remind employees of ha3ardous chemicals or potentially dangerous procedures. "lso check out the 4ealth and
+-" Emer!ency &rocedures 'n the event of an extreme weather emergency, power outage or burglary, your restaurant staff needs to be prepared with the proper precautions and procedures. /ducate your staff about the importance of awareness and security when it comes to crisis situations. ? 8earn -ore

+/" #ompany &roperty and E5uipment
Fundamental )p sellin! Strate!ies $or the Restaurant 5p selling is essentially a practice of embellished suggestions aimed at getting the guest to spend more money. 't is a valuable marketing strategy in any restaurant, but it must be trained and practiced in order to be effective as a sales technique. >estaurant servers, cashiers and kitchen staff who have contact with the customer should know appropriate and effective ways to up sell menu items. These useful methods for up selling in the restaurant will help increase sales and tip money.

How to up sell 5p selling is the art of enticing customers to buy something extra without them knowing you are selling something.

<$$er Multiple Su!!estions Workers can up sell whether they work in a quick%service restaurant or a swanky lounge. 4ere are two prime examples# ←

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 "t Wendy!s, the worker at the cash register will usually ask the customer if he would like to 6$iggie si3e6 his order. This means getting a bigger drink and bigger order of fries for a few extra cents. The customer often feels as though he is getting more bang for his buck, even though he probably did not want the bigger si3e to begin with.  " guest asks the bartender for a vodka martini. >ather than simply taking the order, the bartender asks, 6Which type of vodka would you preferF We offer Grey Goose and
)se Emellished Descriptions
Wine can provide an excellent complement to a meal. 4ence, wine pairing is a great way to up sell to your customers. 4owever, satisfying the customer!s palate with a well%paired wine requires training, experience and extensive knowledge of both the food and wine menus. Taking the time to learn about food and wine pairings can improve the customer@s dining experience and make even more sales for the restaurant. esserts in particular are lucrative but challenging items to up sell. The guest is often satisfied from the main entr=e and may not ask for dessert directly. 8isted below are five popular strategies for up selling desserts# 9. :. ;. E. .

&resent dessert menus a$ter lunch or dinner" $ring out dessert menus for each diner after

clearing dinner plates. calorie options" o not forget to offer low calorie dessert options, which may sway diners who are trying to watch their figures. "lso suggest coffee or tea. Show o$$ your desserts"  When someone does order a dessert item, be sure servers or runners carry it at table level. This way, other diners can see and smell the dessert and may be convinced to order one of their own.

How to 6nte!rate )p sellin! Strate!ies into 1rainin! Sessions 5p selling does not always come naturally. -ake up selling part of the training regimen by offering tips and suggestions to restaurant workers and servers at the start of every shift, as well as during initial training sessions. -anagers and lead servers can help their staff learn to up sell by following these suggestions# ←

Allow servers to taste menu items" *rovide opportunities for servers to taste menu items,

including daily specials. ←

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1rain in menu knowled!e" -ake menu knowledge a priority, so servers can speak intelligently

about the preparation and quality of food. Su!!est vivid descriptions" (ffer ideas for how to use colorful language when describing dishes. or example, avoid simply offering 6a slice of chocolate pie6 and instead up sell 6an exquisite slice of delicate chocolate mousse pie with a dri33le of caramel.6 The second description makes a big difference. Role>play with servers" >ole%play with servers to demonstrate how to ask questions or offer more items &rovide rewards" 4old contests and offer incentives for servers who sell the most dessert or daily special, giving food or gift cards as pri3es.

'reakin! the ,an!ua!e 'arrier4 1rainin! and Mana!in! a Multilin!ual Restaurant Sta$$  "pproximately one third of workers in the quick service restaurant industry are non%native /nglish speakers.9 With an increasing population of multilingual food service workers, the importance of communication and management styles geared toward non%native speakers is paramount to a smooth operation. onsider these guidelines to create a culture of acceptance and make the most of your non% native speakers@ skills and talents. 1ools $or Employees

When working with non%native /nglish speakers, or even those who barely speak /nglish at all, it helps to have materials translated into the appropriate languages so these employees can learn the job as well as a native /nglish speaker. Multilin!ual trainin! materials"

$ilingual or multilingual tools like booklets, quick%reference cards, employee manuals and menus are helpful when training someone new. Multilin!ual &
&*(<) system. 'nstructions for clocking in and clocking out should be in /nglish,

(n occasion, a restaurant or company will offer education as part of the benefit package. This allows employees the means to study /nglish as a second language on a deeper level, improving confidence and skills in the restaurant or any other workplace. ?isual tools"

These can include posters that outline the proper step%by%step procedures for cleaning an area or color% coded bilingual labels to identify chemicals.

1ips $or Mana!ement

 "lthough non%native /nglish speakers and other bilingual employees often need extra training, some real benefit comes from managers who take the time and make the effort to incorporate an understanding of other languages and cultures into the workplace. 1rainin! materials"

-any chain restaurants or large companies offer training classes for managers to learn enough of a language to communicate with their non%/nglish speaking employees. /ven a few functional words help communication as a whole, especially between kitchen managers and kitchen workers in a busy restaurant. ,earnin! the culture" -anagers who learn about their employees@ cultures as well as their languages will

often be better able to accommodate any differences in communication styles. or example, some communication difference that vary by culture may include# ←

Colume of speaking voice

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4ow close one stands to another while holding a conversation

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'f people look directly at one another while speaking;


'mprovement in /nglish can be perceived as excelling in the job itself, and any significant improvement in the workplace should be rewarded with a promotion both in job responsibility and pay rate.

Appreciate diversity in the workplace"

$ilingual and multilingual skills are often an important addition to the workplace. -any people go out to eat, and it helps when you can provide exceptional service to all of your guests, especially non%native /nglish speakers in the area.
Diversity E$$orts  "lthough linguistic and cultural differences can form a barrier, diversity can enhance the workplace environment in many ways. 'n :11:, +ation!s >estaurant +ews and the -ulticultural oodservice H 4ospitality "lliance jointly delivered a iversity
-anagement succession plans

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/nglish language classes

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'nitiatives like these help promote diversity. They capitali3e on the skills and talents of people who often fall under the radar because of a language barrier. (n the whole, diversity can be a positive concept for a restaurant. iversity in the workplace shows and encourages cultural acceptance both for employees and guests.

$asic >estaurant "ccounting The key to any successful business is simple# profits. >estaurant businesses need to make money to survive, and in order to make money, restaurant owners, operators and managers need to know basic restaurant accounting systems to control cash flow, reduce losses and maximi3e their profits. 7eeping track of your finances will put you in a good place to monitor your cash flow and make the most of your business in the long run. ash low -anagement -anaging cash flow means tracking all the cash that is coming in and leaving your restaurant. With sales and expenses always playing a balancing act, estimating future cash flow can be a guessing game until you get the feel for your restaurant!s business patterns, or when the money comes in versus when it goes out. /ssentially, restaurants strive for more income than expenses. When a restaurant is able to bring in more money than it spends, it maximi3es its net income, and the overall profits grow. ? 8earn -ore 7eeping >ecord >ecording your cash flow, including income and expenses, is critical to your restaurant!s accounting procedures. Bour income includes all cash, credit card and check sales received. (utgoing expenses should be recorded with the help of receipts and invoices. Bour *oint of
statement includes information relevant to your cash flow, including sales and labor expenses. ? 8earn -ore  "ccounting
1he Restaurant &ro$it and ,oss @&,B Statement  " restaurant!s profit and loss statement, or *H8, is much like an income statement for the restaurant. This document serves as a report to summari3e income, expenses and inventory, illustrating a restaurant!s total profits and losses over a period of time. -ost *H8 statements involve two major sections# 9.

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The section first specifies any sources of revenue, including food, beverage sales, merchandise sales, catering, and any other source of income important to the restaurant. This section also includes the usage cost associated with the sales, known as the ost of Goods
The difference between the revenue and the expenses determines whether the restaurant reaps a profit or suffers a loss at the end of a given period. >estaurant >evenue  "ll sales income is recorded on the *H8 statement. There are usually separate lines on the statement for the different sources of income, including the following common sources of restaurant revenue# Food and evera!e sales

The most obvious means of income in your restaurant is food and beverage sales, since this is the reason most people come to your restaurant in the first place. ood sales will likely be your major source of income. 4owever, this depends on your restaurant concept. 'f you run a juice bar, juice will constitute most of your sales. Merchandise

-erchandise is another method of boosting profits. -erchandise includes souvenirs, gifts and other retail items unique to your establishment that can increase sales, especially from tourists or holiday shoppers. -erchandise includes the following#

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Gift certificates or gift cards

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ookbooks

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T%shirts

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4ats

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-ugs

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*repackaged food or beverages

#aterin!

 "nother method of creating income is by catering, or engaging in other off%site selling opportunities. atering parties and events for customers is a great way to increase daily sales and reach out to people who have never tried your restaurant. 8imited service restaurants can offer a catered lunch option for surrounding businesses. estaurant /xpenses There are many expenses involved in operating a restaurant. >estaurant owners or operators can include whatever expenses they like on their *H8, as long as it helps them to stay organi3ed and aware of the costs they face. The following are commonly included on restaurant *H8 statements#

#ost o$ 2oods Sold @#<2SB

ost of Goods
 "lso called labor cost, this is one of the most important expenses in your restaurant. *art of your business!s income must go to salaries and hourly wages in order to provide paychecks for your employees. This is considered a controllable cost, however, since the manager can determine how many hourly employees to schedule, and can manipulate the number of people on a shift at any time. The trick is to balance labor in order to provide great customer service without scheduling more workers than you need. ? 8earn -ore
There are several daily expenses incurred while running the restaurant, such as purchasing or replacing china, flatware or glassware, as well as any linens or paper products that may need to be cleaned or replenished. These can be lumped into operational expenses on your *H8.
7nown as occupancy costs, rent or mortgage, property taxes, water and sewer taxes, gas and electric, insurance, and repairs all fall under the restaurant owner!s responsibility. These are typically known as fixed expenses since restaurant owners usually have to pay a steady amount on these costs every month. *hen to &repare a &, Report

't is best to prepare a *H8 each week if possible. This makes it easier to track numbers and compare reports from month to month and even year to year.9 The main reason for the *H8 report is simply to track these profits and expenses to see how well your business is doing. When you know the numbers and trends, you know what changes you can make to improve your business profits.
ownload a sample *rofit 8oss
Restaurant #ost o$ 2oods Sold @#<2SB Made Simple ost of Goods
The e!innin! inventory means the amount of product that you have in your kitchen and storage rooms at the beginning of a period, usually the beginning of the week. or instance, if -onday is the start of your business week, and you have I,111 worth of food and beverages on your shelves, I,111 is your beginning inventory.

&urchases means the amount of inventory you purchase in food and beverage orders in that period of

time. 'f an order of another I;,111 worth of inventory arrives on riday, this would be considered the purchase.

Endin! inventory, then, is the amount of food product you have left when the work week is over. "lthough

you purchased product during the week, but you will have less inventory at the end of the week since you sold the food to your customers. or example, at the end of the work week, you have IE,111 worth of inventory remaining.

or example, if your restaurant has I,111 worth of inventory on hand on -onday, and then purchases another I;,111 of food and beverage product, you have a total of IJ,111 worth of inventory at the beginning of the week. The following -onday morning, you arrive at the restaurant and count IE,111 worth of inventory. This gives you a usage cost, or (G<, of IE,111. This means that you sold IE,111 worth of inventory. The equation looks like this#

 "dding Transfers to the +umbers

To be even more accurate, you can use the equation below# 6Transfers out6 include any products that you send out of the restaurant to another area in your restaurant &such as from the bar to the kitchen) or to another restaurant altogether &often another restaurant in the same chain). Thus, 6transfers in6 are products that you transfer from another restaurant to your own. 'f you have no transfers in or out, simply leave these parts of the equation at 3ero value. 't is important that any transfers are recorded because any items coming in or leaving your kitchen will affect your inventory count.

>eferring back to our example from above, imagine the following scenario# due to the unanticipated celebrity of your weekend special, chicken with exotic fig sauce, your restaurant is about to run out of exotic figs.
The other restaurant operators would do the oppositeK that is, remove IJ.11 worth of inventory from their kitchen and subtract it from their beginning inventory numbers. ood ost *ercentage (ne of the most important numbers restaurant managers and owners look at is food cost percentage. 'n food service, this percentage represents the portion of sales spent on food.
5sing the original example, one would determine the food cost by taking the (G< dollar amount and dividing it by the total sales for the week.
'n this case, about ;9L of sales were spent on food and supplies. This is a fairly typical food cost for a restaurant.

ategori3e the ost 't is very helpful to break down your food cost into all the types of foods and beverages your purchase. or instance, a ;9L food cost may be broken down into the following food categories#

'f food cost is high, categori3ing like this will help determine where the money is being over%spent. (perators can keep a much better tab on food cost when they know exactly what percentage of the total cost they are spending on each category of food. etermining Gross *rofit The (G< equations are essential for figuring the restaurant!s gross profit#

Gross profit is calculated by deducting money you spend on food and beverages from your total revenue. 5sing the ongoing example, you would subtract your (G< &IE,111), from your total sales &I9:,01) in order to find your gross profit. The example looks like this#

 "lthough gross profits may be included in your *rofit and 8oss &*H8) statement, the important number to look for is the net profit. +et profit, or actual profit, is the gross profit minus all operating costs such as labor, rent, repairs, and marketing costs, to name a few. This is your restaurant!s true profit after all is said and done. ? 8earn -ore Making profits is the restaurant's number one goal. In order to do this, the manager needs to simultaneously bring in revenue and control costs in the restaurant. This is one of the biggest challenges, but also one of the manager's most important responsibilities. Maintain a steady, profitable food cost by adhering to all recipes, assessing purchasing procedures and properly conducting inventory in your restaurant.

'asic 1ips $or #reatin! and )sin! an Annual 'ud!et in Your Restaurant reating an annual budget involves estimating about how much money you will spend in different areas of your restaurant. or instance, you know there will be expenses associated with running the business, but it will help you enormously if you can anticipate those expenses and stay within a financial plan from one month to another. "n annual budget gives you goals to reach and limits to beat. The budget is also essential to plan for the restaurant!s future spending. 4ere are a few tips for creating a budget that works for  your restaurant.

&lan y Month or &eriod -ost restaurants use a system of 9:%month or 9; four%week periods to track their annual budget. $y breaking the budget down into these types of sections, it is easier to see when money is moving in and out of the restaurant.

Determine Your &roCected Sales  "scertaining your projected sales, also known as a sales forecast, helps you figure out how much your restaurant will make in sales during a given period. There are many ways to determine your restaurant!s projected sales. 't comes down to making an educated estimate about the customer traffic and resulting sales your restaurant generates.

Anticipate Your #osts 'n the restaurant, budgeting is often a game of balancing costs and income. 'n fact, a budget is much like a profit and loss &*H8) statement extended over a longer period of time. $e prepared to account for the following costs in your annual budget# ←

>ent or mortgage payments

←

Taxes

←

'nsurance

←

8aborMpayroll

←

5tilities

←

8oan payments

←

(perational supplies

←

>epairs and maintenance

←

-arketing

←

Training

ood service professionals suggest that you plan to spend about ;1 percent of your budget on food, : percent on labor, 91 percent on rent or mortgage, and ; percent on utilities. 9 The rest goes in small parts to operational expenses, marketing, taxes, maintenance and other variable costs. These are simply estimated guidelines to follow, as every restaurant!s expenses and budget are different. 8ook below for a graphical representation of these suggested expenditures#

%now Your 'reakeven &oint The breakeven point is the volume of sales needed to cover all expenses without making a profit. 't is the bare minimum amount of sales the restaurant operation needs to bring in to survive. 't is important to know your restaurants breakeven point so that future financial decisions can be made in hopes of making a reasonable profit.

Analy.e Your Financials Every &eriod /xamining your *H8 and your budget on a weekly and monthly basis will help you keep your bases covered in terms of reali3ing your expenses and income. /valuate your budgeted operating expenses and your actual expenses, as well as the net profit you anticipated and what your restaurant actually made. -ake a note of any areas in which your expenses exceeded your budgeted amount.

When budgeting for the year, especially if you are doing so for the first time, it helps to have a budget worksheet. ownload a sample budget worksheet &xls) to your own back office computer.

How to &rice Menu 6tems in the Restaurant $ooks on restaurant management will tell you that pricing your restaurant menu items is somewhat of a vague process. Bou can figure out how much you are paying for food supplies and simply charge three times as much. Bou can try to out%do your competition by lowering your prices, or you can guess and hope your customers will pay the prices you apply. The options above, although not unheard of, probably incur too much risk. "fter all, your menu, pricing included, is one of the main reasons your customers come through your doors. They want a quality product and they want to pay your operation accordingly. Bour prices will influence how your restaurant is perceived by the public. *rices directly affect your restaurant!s profitability, so it is important to spend the time required to get it as close to perfect as possible. "lthough there is no exact formula, the guidelines in this article will help demystify the process so you can gain the most benefit from your decisions. Things to onsider $efore *ricing There are a variety of aspects that affect restaurant menu pricing methods. onsider the following influencing factors and how they affect your restaurant before you begin pricing or changing menu prices. Direct costs" These are the ingredient costs associated with the food item itself. This also involves the food

cost, how you portion the servings, and how much is spilled, overcooked, thrown away or otherwise wasted during the preparation process. 6ndirect costs" 'ndirect costs are those that do not include the actual ingredients that make up a dish, but

the aspects of your restaurant that add perceived value or quality. These provide significant basis upon which to charge higher prices.

←

&reparation and laor" The labor to prepare a menu item is considered an indirect cost. -enu

←

items that require time, effort, artistry or talent to prepare merit a higher menu price than something that simply requires heating and plating.
?olatile $ood costs" -any raw commodity food items, or basic ingredients with minimal quality variance,

may fluctuate as often as daily. or instance, flooding in Texas could wipe out a tomato crop, causing supply to drop and demand to increase. Bou may want to set your menu prices slightly higher for items that tend to swing in price, especially for when food costs increase unexpectedly. This way, you will avoid losing money even when paying slightly more for those products. #ompetition" heck out your competition on a regular basis. Bou might even go out to eat at your rival

restaurants and take advantage of the opportunity to see what you can improve about your own operation. Service type" *rices will undoubtedly change depending on whether your restaurant is a fast%casual

restaurant or a fine dining restaurant. $e sure your prices represent the service value your customers receive. or instance, full service restaurants can always charge more for their hamburgers than quick% service joints, because full service restaurants are also providing greater ambience, better service and often better ingredients than the quick%service alternative. &ricin! oundaries" etermine your boundaries. /very restaurant situation is different and prices will vary

depending on location, preparation and simple supply and demand. igure out the very least you can charge while still making a reasonable profit in your business, and then determine the highest price your market will pay for your items. Gather information about demographics and average income levels in order to find out the prices people in your market area will pay. ommon -enu *ricing -ethods

Bour restaurant concept, that is, the type of food, service and ambience has a lot to do with the different challenges a restaurant owner might face when pricing menu items. There are other methods of pricing menu items, but below are some common suggestions for how some restaurant owners choose to proceed# 6deal Food #ost &ricin! Method

This method calls for an owner to consider the actual cost of a menu item, then consider his or her ideal food cost percentage. 'deal food cost percentage varies, but typically lies somewhere between : and ;1 percent. The two are divided and voila, you have a menu item price.
5sing the ideal food costing method method, the chicken entr=e should be priced at I9E.9N. To use this method, you need to know the cost of all the ingredients in the recipe for 8emon >osemary hicken, from the half cup of lemon juice to the pinch of fresh rosemary to the chicken itself. Bou also need to account for any side items that come with the entr=e, and factor that into the menu price as well. /very food item on the plate matters.
id Bou 7nowF 'tems like fryer oil, salt and pepper and condiments can affect your overall food cost. Bou should account for  a variance of about EL to keep from losing money on these indirect costs. or instance, if you are shooting for a food cost percentage of ;: percent, you should actually try to hit :J percent to account for those extra costs.9 ? 8earn -ore 4owever, since factors like indirect costs, price volatility and competition are important to consider, this may not be the most reliable pricing method. "pplying a price markup to all items in one fell swoop like this may inaccurately and unreasonably over% or under%price some of your items. "nd finally, it is always important to pay attention to the market and see what the customers in your area are willing to pay. ompetition *ricing -ethod The restaurant owner using this method assigns prices to items based on the general market price or the prices assigned by the competition. 5sually, the owner will either price the item to be the same as the competing prices, price it slightly lower to get those looking for a bargain, or price it higher to attract those looking for higher quality. This means that a restaurant has to work within a certain price, including labor and preparation, potentially putting a strain on the chef. $eware of *rice Gouging ood service operations in ballparks or stadiums tend to charge people more for their food and goods, since guests do not have the option to leave and get food somewhere else. 4owever, some places take this too far by charging more than what is considered reasonable. $e careful of those upper limits and be fair to your customers. or instance, if the owner prices the 8emon >osemary hicken at I9E.11 because that is just under the current competition!s prices, and the ideal food cost percentage is ;1 percent, the chef needs to make sure the kitchen is producing this item at no more than IE.:1. This can be complicated. Demand>Driven &ricin! Method

This concept is based on the economics of supply and demand. or instance, restaurants in airports or concession stands at sports stadiums can get away with charging more for their food items because it is the only source of food in the vicinity. The demand for food is greater than the supply, so people are willing to pay more for it. >estaurants that offer specialty menu items or a unique and exciting ambience can get away with charging more since it reflects both the food and the experience.
/valuate urrent *rofitability When you know which menu items are the highest grossing items &meaning they result in the most profit before any other expenses are considered) then you know which items to promote. 'n the chart below, you can see by looking at the last column that the king crab legs are the most profitable item on this seafood menu. /ven though the food cost is greater for the crab legs, the gross profit is higher as well. To many operators, it is the gross profit that matters most. To maximi3e your profit, you might consider raising the price of the other fish entr=es slightly, or simply train your serving team to upsell the crab legs.

ish

ood ost


ood ost L

Gross *rofit

4alibut

I:.0

I9:.0O

:9.1L

I91.1E

7ing rab 8egs

I0.1

I:1.0O

;N.E1L

I9;.:O


IN.E:

I9J.OO

;.N1L

I99.0

'ncreasing *rofitability >aising menu prices is a delicate issue. -any restaurant owners are unsure how to handle it because of how it might negatively affect their consumers! perception of the restaurant. Try the following suggestions to increase your restaurant!s profitability#

&romote your value" -arketing your brand and your best products can communicate your value to

potential customers. 5se coupons, advertisements, and other marketing strategies to start making more money. Make your pro$itale items stand out" iller items are those that take up space on your menu pages but

do not offer much in the way of gross profitability. -ake sure you make your highest grossing items stand out on the menu. Add appeal to asic menu items" Bou can make your menu items more flexible and add value by creating

a more attractive name, an intriguing sauce or dressing or a special theme to the food. or instance, taking a normal hamburger and dri33ling it in a spicy honey barbeque sauce might add a little pi33a33 and appeal, giving the public more incentive to try it and the owner a reason to slightly increase the price. #han!e prices in small increments" 
prices, and small amounts of revenue can add up to a large gain in profit. "dditionally, items ending in odd numbers such as .O or .OO are less off%putting than whole numbers. : )se specials to $uel !uest interest" ull%service restaurants are able to create occasional specials that

guests can order off the menu. "lthough specials can be created from the food you already have in your inventory, they should not be concocted from week%old leftovers. -enu specials are a great way to create new, exciting menu items to entice your customers. 'f the special goes over well, you can certainly consider adding it to your menu to start making a consistent profit from it.

1op 1en 1ips $or #ontrollin! Food #ost in the Restaurant ood cost is one of the highest costs in the restaurant. 'n order to keep food cost percentage, also known as ost of Goods
>egular and thorough inventory counts will help you stay in control of your usage and the costs associated. This is especially important for high%cost items such as meat and liquor. ? 8earn -ore /" &rice menu items properly"

When you price your menu items reasonably, your customers will continue to pay you and you will make a profit on your products. ? 8earn -ore 0" &ortion $ood correctly"

$e sure to serve food in portions that will not over% or under%fill plates. When customers are finished eating, look at the plates as they come back to the kitchen. 'f there is a lot left on the plate, or you are consistently wrapping up take%home containers, you may be over%portioning your meals. 3" Handle $ood properly.

/nforce first%in, first%out &'() rotation for all perishable foods. 7eep foods at proper temperatures and cook all foods correctly to avoid waste and prevent contamination. ? 8earn -ore 9" Rethink the !arnish.

Garnishes often consist of fancy fruits or layers of fresh lettuce which add visual appeal but are rarely eaten. 5se less expensive food items or remove garnishes entirely to save on food costs. :" %eep a record o$ all $ood waste"

5se a waste chart to write down any foods that are made incorrectly, thrown away or spilled. ailing to record this 6usage6 will skew inventory reports and throw off your food cost percentage. ;" 'e consistent with $ood purchases"

onsistency with food purchases comes with time but can help you to anticipate expenses from week to week and keep your food costs steady. ? 8earn -ore O. #reate a rapport with suppliers" (nce you are in business a while, your suppliers will get to know your regular food orders and you will become familiar with the cost of your purchased goods. $e sure you stay in communication with your suppliers in case of any problems with food quality or any issues with food prices. ? 8earn -ore +8" 1rain employees to care"

When your employees see how your inventory represents potential profitsAas well as their paychecksA they are more apt to stay aware of waste, portioning and overall food quality.

How to #ontrol ,aor #osts in the Restaurant (perating a restaurant involves many expenses. /ssentially, you incur labor costs when you have employees working for you. 8abor is an operational expense in just about any restaurant, predominantly including hourly wages for staff members. 8abor ost "wareness 8abor costs are typically understood as a percentage of sales. To figure your labor cost, use this equation#

-any restaurants hope to run a labor percentage below approximately :1 percent. When the costs begin to climb, anxiety levels rise as well. 1rain Your Sta$$ 

ross%training is beneficial to both the employee and the business, since the worker will have a wider range of skills and be able to help in multiple areas of the restaurant. This allows the manager to schedule fewer workers while still being able to achieve the same production and service standards.
Train your prep cook to handle the grill

←

Train your hostesses to work as back%up servers

←

Train bussers to help run food to customers

#onduct Fre5uent Sta$$ Audits and Reviews

 "nother great way to help improve productivity is to perform regular audits. Take the time to watch and assess your employees@ performances. 'f you find that a large portion of your employees@ work days includes inordinately long breaks or downtime, it might be wise to revise your schedule. onducting face%to% face reviews with each member of the staff will help communicate your thoughts and concerns. #ontrol ,aor #ost *ith &recise Schedulin!

-ake sure you have constructed a budget to help keep track of your annual sales and expenses like labor. Through your budget, allow a percentage of your sales to cover labor expenses. Then, create a staffing schedule to reflect your budgeted allowance for labor expenses. The following tips elaborate these guidelines# 'reak down your annual ud!et" $reak down your annual budget into monthly budgets to help divide the

money into weekly sections. This will give you a weekly budget, from which you can determine labor costs and make an appropriate staffing schedule.

Desi!n a new weekly schedule $or all employees" >elying on a fixed schedule week after week fails to

acknowledge shifts in projected sales, changes in the weather or other factors that can affect your business. "djust the number of staff scheduled each week to keep compliant with weekly budget constraints. ? 8earn more Monitor clock inclock out times" "fter every shift, make sure that all employees have punched in and

punched out exactly according to the schedule. -anagers can usually use tools within the *oint of
start to work overtime, working more hours than the budget allows and potentially breaking a law, if the workers are youths. $e sure a manager is constantly aware of any proposed changes in the schedule. Avoid Sta$$in!

't is often tempting to schedule more people than necessary in order to ensure that the business runs without any kinks. The reality is, however, that there will always be a few kinks in the restaurant business.
Restaurant Employee *a!es and 'ene$its Wages and benefits vary slightly from restaurant to restaurant, even for the same position. 'f you are a manager hiring people for the first time, or simply assessing wages in order to make changes to your current payroll, check out the average national statistics. >estaurant /mployee Wages -edian Wages for >estaurant /mployees >estaurant worker wages are different depending on the type of restaurant, the geographical location, and the worker responsibilities. The chart below illustrates several restaurant workers! average hourly and annual wages, as well as the highest and lowest percentile wage estimates for the jobs, according to the 5nited
Employee &osition

Hourly *a!e  "verage

ood
I:;.;O

Annual *a!e

8owest % 8owest % highest  "verage highest percentile percentile I9;.J % I;.N9

IEJ,NN1

I:J,:E1 % I0E,1N1

>estaurant ooks#

I91.N

I0.:0 % I9E.

I:9,ON1

I9,9:1 % I;1,:01

ast ood ooks#

IJ.99

IN.;E % I91.;E

I9N,JN1

I9;,9J1 % I:9,91

>estaurant dishwashers#

IJ.:1

IN.N % I91.;J

I90,1N1

I9;,NE1 % I:9,J1

$artenders#

IO.EO

IN.NN % I9E.1

I9O,0E1

I9;,J1 % I;1,901

>estaurant 4ostsM4ostesses#

IJ.E

IN.E % I99.;E

I90,001

I9;,N91 % I:;,J1

Waiters and Waitresses#

IJ.O;

IN.;9 % I9;,9:1 % I9J,01 I9;. I:J,9J1 &with tips)

-inimum Wage -inimum wage is the lowest rate businesses can legally pay their employees. 'n the restaurant industry, employees! salaries are often determined by assessing the national minimum wage and raising it accordingly. "s of Duly :E, :11J, the minimum wage is IN. per hour.: -inimum wages increase every year. ? 8earn -ore

ommon >estaurant /mployee $enefits Tips Tips are often considered a benefit of working in a restaurant, but many servers and bartenders would most likely consider it part of their income. These restaurant workers usually work for a pay rate of less than minimum wage, but take home a good deal more based on their tip income. Tips are sometimes distributed among kitchen staff and bussers as well. 5nlike other restaurant benefits, tips are given by guests, not restaurant owners. ? 8earn -ore

-eal $enefits >estaurants often offer daily employee meal benefits to their workers. These usually involves one discounted or free meal from the restaurant menu per employee per shift. 4owever, each restaurant meal policy is different, depending on corporate rules, food type and budget. ? 8earn -ore *aid Time (ff  >estaurant managers may receive a certain number of paid sick days and vacation days, depending on the restaurant!s policies. 4ourly workers typically need to request time off in advance and do not get paid for vacation days or sick days.

5ncommon >estaurant /mployee $enefits 'nsurance >estaurant managers and other supervising positions are often entitled to insurance benefits in the restaurant.
-edical

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ental

←

Cision

←

8ife

←

isability

E197  " E197 is a tax%deferred retirement savings investment plan sponsored by an employer. /mployees who are offered a E197 plan transfer a portion of their income to the E197 account each month and plan to withdraw it after retirement. -uch like insurance, E197 plans are not offered by all employers, and when they are, they are mainly offered to managers and assistant managers. epresentatives passed a bipartisan bill amending the air 8abor estaurant "ssociation, the passage of the bill was a major step in improving restaurant employer%employee relationships. ;
How to Make a Restaurant Schedule  " restaurant schedule is essential to your operation. +ot only will the schedule delineate which employees will work the daily shifts, the schedule is a crucial way to anticipate the daily sales, control labor costs and ensure that all parts of the operation have the help they need to run smoothly. The most important goals of the restaurant schedule include guest satisfaction and controlled labor costs. inding the
There are several ways of actually making the schedule. -odern technology simplifies the process, allowing for daily and weekly labor cost calculation as you plan.
 "s you work to create the schedule for each week, try to predict customer counts and sales. *redicting the amount of business you will do in a given week is one of the keys to preparing an accurate schedule. "fter all, your goal is to schedule for a well%functioning restaurant. $e sure to match these predictions with the percentage of your annual budget and sales to ensure that you are hitting your labor cost target. Mind$ully Schedule Your Employees

reating a schedule can be time%consuming and even tedious. Bou must keep in mind the availability of each employee, as well as their skills and talents to make sure your restaurant has the people it needs to run successfully.
5sing the egarding scheduling, it is a good plan to have a set of regulations regarding how it will be used, where it will be posted, how it can be altered, and how often a new one will be made. onsider these factors and communicate any pertinent information to your employees. This type of planning can save a good deal of headache for any manager. Schedule Fre5uency


(nce you have created the schedule, hang it where your employees can see it and make copies of their upcoming shifts for the week.
+o matter how much time and effort you put into creating the perfect schedule, no schedule is going to remain pristine once tacked onto the staff bulletin board. " typical manager is often approached with requests to change the schedule with a multitude of reasons. "n employee may become sick after you have created the schedule for the week, and you need to cover his or her shifts. "n employee may want to take more shifts to make more money. "nother employee may have weekend plans and cannot work the time you scheduled. 'n cases like these, have a plan of action. ommunicate to employees that managers are the only ones allowed to make changes to the schedule, and must notify a manager at any time they need to change anything.
How to Reduce Sta$$ 1urnover and 6mprove Employee Retention in Your Restaurant 4iring great restaurant workers is one thing. 7eeping them is an entirely different thing. -ost restaurant operators reali3e that their employees are not typically planning on a long%term career in the food service industry. "t least, that is the trend according to research from the +ational >estaurant "ssociation. >esearch shows that employee turnover in a sampling of full%service restaurants lingered just over an average of 0JL in 9OO0.9 "lmost ten years later, another report showed that employee turnover had risen to a rate of 910L for another sampling of restaurants. : "lthough comparisons between these two findings are not direct, the research suggests that employee turnover in the restaurant industry is a growing concern for owners and operators. >easons /mployees 8eave There are numerous reasons for an employee to leave a job. 4owever, the reasons can become amplified by the high stress levels and relatively low pay rates in a typical restaurant.
6nade5uate &ay Rate

←

,ack o$ Reco!nition

←

(ot Enou!h Hours

←

#on$lict *ith Sta$$ or Mana!ement

←

1oo Few
←

,ack o$ Employment 'ene$its

$est Ways to /ncourage /mployee >etention espite the numerous reasons restaurant staff leave their jobs, there are ways you can work to retain them. inding and training new employees can be a time%consuming and costly enterprise, so taking the extra step to keep your best workers around will improve both your business and your peace of mind. <$$er &ay Raises


Take the time to get to know your employees as people. 8earn about their families, pets, hobbies and passions. When you build a relationship of respect and care, your people will feel better about coming to work and likely return the sentiment. "nother part of taking care of them is offering them insurance. Whenever possible, offer a benefits package. Reco!ni.e and Reward

4ardworking, committed and ethical employees can be hard to come by. When you find them, be sure they are appropriately recogni3ed. or instance, praise their work in front of their peers. This shows the rest of the team that you like what you see. Bou might reward an employee@s achievement with a gift card or some free movie passes.
/mployees are looking for someone who is fair to them, especially when it comes to pay rates and scheduling. When determining pay rates, pay fairly according to the offer given during the hiring process. 'f the employee shows extra effort or increased achievement, then consider discussing a pay increase. emind employees that you need to run a business at all times, and that your scheduling choices are made for the good of the company. ? 8earn -ore

6mprove #ommunication


*art of a manager@s responsibilities is to ensure that employees can work together as a team, even when they do not especially like one another.
rom day one, all staff members in the restaurant should have an adequate training program. This should include an orientation to the position and the restaurant, as well as all necessary information to perform up to standard, including safety training, equipment training and customer service training, among others. /mployees who feel knowledgeable and comfortable in their surroundings will more often feel successful and content with their position. &rovide
Whenever possible, consider each staff member for potential advancement within the business. or example, take note of employee@s performance and interests, and offer training programs for hostesses who want to become servers, or dishwashers who would like to move up to line cooks. These types of advancements boost morale as well as interest in the industry.

Restaurant Server 1rainin! 2uidelines -ost fine dining and casual dining restaurants employ a waitstaff to serve and care for the patrons.
(ften the restaurant name, founder, owner or structure will have some special meaning or interest value which can engage the patrons and make them feel like part of the concept itself. Restaurant layout.
the dining room floor. *roper orientation to the layout of the restaurant, including restrooms, emergency exits, storage rooms, kitchen space and dining room arrangement are important to a server@s speed and comfort in the restaurant environment. Menu knowled!e" -anagers often provide new servers the opportunity to taste several items on the menu

before serving them. 'n order to sell the items, it is essential that servers sample as much as possible so they can suggest a favorite or describe the flavors of the special. "dditionally, guests often want to know the nutritional information of dishes, or how they are prepared.

Eti5uette" *roper service etiquette is paramount to a memorable dining experience.
adequately trained in exceptional customer care before they begin working shifts. *rovide opportunities to practice proper serving techniques and etiquette by engaging in role%modeling exercises, or by pairing more experienced workers with new ones. /mphasi3e the desirable traits in a restaurant employee. or example, use the acronym <./.>.C.'../. to remind your servers of how they should portray themselves.

Shadowin!" -any restaurant owners or managers will require that all new hires spend time shadowing, or

following other servers throughout one or more complete shifts. This allows the more experienced server to

model proper server etiquette, menu knowledge and responsible behavior to the new hire, easing him or her into the new role.

6nstill the ri!ht ehaviors" Throughout the initial training period, instilling the correct behaviors in new

hires is crucial. (ne of these crucial habits involves writing orders down. This shows a desire for precision and eliminates embarrassing, forgetful moments. (ther behaviors that deserve emphasis include# ←

ompleting cleaning duties throughout the shift

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4elping team%mates whenever possible

8eaving personal issues at the door  (ngoing Training ←

Though your experienced servers may not require intensive training sessions, ongoing training can help improve skills and address any recurring issues. 6mprove su!!estive sellin! skills" "s servers become better acquainted with the restaurant and the

menu, they are able to suggest the best appeti3ers, the most profitable entr=es and the most irresistible desserts to improve their sales.
$ecoming familiar with the menu

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8earning which menu items are most profitable

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Gaining knowledge of daily specials

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5pselling menu items

6!norin! vs" smotherin! a tale" When serving a table, it is important to find the balance between ignoring

the patrons and spending too much time with them. Training a server to read the attitude at a table is a good way to tell about how much attention they need. ustomers who consistently look around the restaurant are probably looking for their absent server. 4owever, customers who make minimal eye contact or continue their conversation in the server@s presence probably want less attention. 6mprove multi>taskin! skills" "t all times, servers should be considering the needs of their tables. They

should be constantly aware of whether the tables need food or drinks, if the plates need clearing, and if the patrons are ready for a check. "dditionally, servers should be aware of their teammates, helping to run food or refill drinks if they could use some help.

#onductin! 6nventory and 1rackin! )sa!e in the Restaurant 4ome R /ducation enter  R >estaurant (perations R onducting 'nventory and Tracking 5sage in the >estaurant 'nventory signifies all food, beverages, serving supplies and cleaning supplies you have in the restaurant. /very piece of inventory should be counted at least once every week so that you can prepare menu items for your customers and stay in control of the goods you have on hand. The *urpose of onducting 'nventory ritical ontrol 'tems 'n the restaurant, there are likely a few items that are top sellers or especially important to your menu. These are also called key items, or 6center of the plate6 items. These items should be inventoried every day before doors open for sales. aily critical control counts will help you keep better track of those important items, and help you keep your kitchen staff accountable in case something is spilled, overcooked or stolen. The main purpose of conducting inventory counts is to measure the amount of food, supplies and other products your restaurant uses over time. This usage can be converted to a cost, which is then compared to total sales for a given period. This way, you can get a feel for how much profit your business makes from the product sold. Taking inventory affects your ordering processes as well. 't lets you know how much you have as well as how fast it is being used, and thus how much you need to order each week. "fter all, if you have too much fresh food in the refrigerator, it will go bad. 'f you do not have enough, you risk running out of food and disappointing your guests. 4ow to ount 'nventory Total inventory is typically counted once a week. To avoid problems with counting, it is good practice to have the same manager, or better yet, pair of managers, count the inventory every time.
un variance reports to find any discrepancies between theoretical and actual usage.

/xample of an 'nventory ount
'n the count sheet above, the item and unit of measure is constant. The 6inventory6 column is where the manager taking inventory writes in the numbers of every product counted. The 6unit price6 column is included to show the worth of the individual item, and the 6total cost6 shows how the total worth of the entire stock of that item. Cariance and 5sage Cariance is the difference between theoretical usage and actual usage. Theoretical usage, also known as ideal usage, is the amount of inventory your restaurant sells according to your *oint of eport#

'n the sample section of the variance report above, you can see that two items are being analy3ed# blueberry muffins and banana muffins. or blueberry muffins, the actual usage, or the amount of muffins sold off the menu, exceeds the theoretical usage, or what was entered into the *(<, by seven muffins. That means that more muffins were sold &or eaten, or spilled, etc) than the *(< accounted for. This results in lost moneyAI;.0J to be exactAdue to those seven mystery muffins that were never tracked. or banana muffins, the opposite is true. This is likely due to a counting error or keystroke error in the *(<. epleted 'nventory There are a number of reasons why your restaurant might experience a loss in inventory. The following are the most common reasons why restaurants lose product# *aste"  't happens in every restaurant. " server accidentally spills a plate of food, or a kitchen worker burns

several pieces of steak. +o matter how it happens, restaurant staff should get into the habit of recording all wasted items. "n easy way to do this is by handwriting the item, the amount wasted, and the reason it happened on a clipboard sheet. This way, any missing inventory is accounted for when analy3ing usage.  "dditionally, managers need to learn why food is being wasted and how they can rectify the problem. 't could be that employees are working irresponsibly, or perhaps they are unaware of how to correctly prepare the food, in which case the employees may require further training. &oor Food Handlin!" "lthough typically another way of wasting food items, poor food handling is one of

the biggest contributors to depleted inventory. ommercial kitchen operators would do well to implement a mantra of 6label, date, rotate and consolidate6 with kitchen staff. When food is properly labeled and correctly

dated, workers know what to use and when. *roper first%in, first%out &'() rotation is essential for reducing food spoilage, and proper consolidation from large, unwieldy containers to small, manageable ones will keep food fresher and more visible for use. #omplimentary items" 
complimentary item. *erhaps a customer is valued for his return business, or a pair of customers are celebrating a special occasion at your restaurant. /ven for situations where free items are given as rewards rather than compensation for an unpleasant experience, managers need to approve all comped items. This is to verify the legitimacy of the transaction, as well as to appropriately account for the depleted inventory. 1he$t" 'nsider theft is an unfortunate reality in many restaurants. "lthough this is not the norm, theft can be

a reason for lost inventory. Theft involves anything from eating restaurant food outside of employee meals to stealing full bottles of alcohol. 7eep an eye out for behavior that may point to restaurant employee theft. ? 8earn -ore Suick Tip# 5se discretion when submitting food orders and avoid purchasing more than your restaurant needs. "n excess of product might signal to workers that wasting food or making mistakes is no big deal. 'nvariably, more food ends up burned or on the floor. With less product to work with, food is handled more responsibly and less is wasted. ? 8earn -ore 1rans$ers" Transfers involve moving inventory from one department to another, such as from the bar to the

kitchen. 't can also mean sending an item from one establishment to another, a common occurrence in restaurant chains. Dust make sure any transfers are accounted for so they do not negatively affect your *H8. (ften, the best defense against lost inventory is simply recording any food that is wasted, any complimentary items given and any product transfers in or out. To do this, you need to enter the items appropriately into your accounting software systems, or manually record the costs as expenses. or instance, if you comp a customer!s meal, you can typically enter it into the *(< system as such, which then translates to your *H8. ? 8earn -ore

&urchasin! &rocedures in the Restaurant 'n order to produce your menu items for your guests, you need to order the proper raw materials for your restaurant. This typically requires purchasing food and supplies from one or more vendors every week. hoosing a vendor and placing an accurate food order can be a tricky process, so consider the following guidelines when selecting vendors and purchasing inventory for your restaurant. hoosing a Cendor hoosing a vendor is much like hiring a new employee. 't is best to find a company and people with whom you work well and feel comfortable. "t a minimum, a vendor is responsible for delivering food or supplies at a price within your budget. 4owever, do not make a decision based solely on price. Bou will need to work out several details about product specifications, delivery times, and terms of payment, and so choosing a vendor with whom you can forge a good working relationship will be helpful in the long run. 5se the following guidelines to find a vendor that will suit your needs# #heck re$erences" Get to know the company, and ask them what other restaurants they serve. $y

contacting those restaurants, you can get an idea about the vendor staff as well as the way they do business. Bou are not only looking for someone to supply you with product, but someone to help you succeed as well. ,ook $or 5uality product and service" Good vendors are not always the ones with the cheapest prices.

Without quality food and supplies, your restaurant will not bring in the customers and the revenue it needs to survive. "dditionally, quality customer service is the foundation of a good working relationship, so look for  a vendor who can provide great, consistent service to you and your restaurant employees. Ask aout packin! dates" $efore settling on a vendor, always ask about meat packing practices, if

applicable. ind out the typical time between the slaughter date, the packing date and the shipping date.  "lthough the topic is unpleasant, determining this information ahead of time is critical ensuring you receive a fresh product. heck to make sure that there is never be more than six days between the kill date and the shipping date on the meats you purchase.9 %eep vendors to a minimum" Bou probably cannot purchase all the products you need from the same

vendor. or instance, you usually need to purchase liquor and food from different vendors, and you may even find that you need to order some food items from one vendor and other food items from another. 4owever, keeping track of a lot of invoices wastes time and energy, so try meet your needs with the fewest possible number of food vendors. +egotiating the $est eal /ven when you find a vendor that appears to fit your restaurant needs, you may have to negotiate certain aspects of your business relationship before all is said and done. $e sure to settle all your business terms before securing a food vendor. (e!otiate product standards" Bou should feel confident that your vendor will provide quality food products

for your restaurant. 'n the event that 91 cases of potatoes arrive and half of them are rotten, you want to be sure that your vendor will take care of the problem. "dhere to your standards and make sure you know that your vendors guarantee their products in the event of a mishap or problem. Discuss the delivery schedule" -ost vendors service other companies in addition to yours, so you may

need to negotiate a schedule that works for you both. o not schedule deliveries for peak business times at your restaurant, and agree on a window of time in which the delivery should arrive. -any restaurants choose early morning hours for delivery times. Settle prices and payment terms" *roduct prices and terms of payment involve negotiation. $e sure you

discuss product specifications, including item quantity, overall yield and the prices expected for the products. -aintain stringent standards and keep quality your priority. "dditionally, be sure to discuss payment terms. -any vendors want payment within ;1 days or less, but others may offer more flexibilityA policies and requirements vary by vendor. etermining 4ow -uch to (rder When purchasing supplies, pay attention to your inventory levels as well as your sales throughout a given period. Try to create a system for ordering in your restaurant so that you spend your money wisely and keep your food cost in check. Who *laces the (rderF The person in charge of purchasing needs to know the kitchen inside and out, and be able to make the best choices for the restaurant!s needs. epending on the operation, kitchen managers, executive chefs and general managers are usually good choices for this position. 5sually, having only one or two persons responsible for all the purchasing for the restaurant can help keep things under control.

&ars and 'uild>1o Amounts  "n efficient way of establishing order amounts is to use a system of 6par levels,6 also known as 6build%to

amounts.6 These are synonymous industry terms for the amount of food and supplies your restaurant should always have on hand for the coming period between deliveries. &ar level" The best way to determine par levels is to keep an eye on your actual usage over a period of

time. "fter a while, you will get a feel for how much of every item you need to have on hand each week to accommodate your sales. When it comes to determining par levers, experience is the best teacher.

Example 'f you find that you are going through 91 %9: packs of hot dogs every week, your par for hot dogs might be twelve packs. Twelve packs may be too much some weeks, but you might order them as a safeguard in case you unexpectedly run out of hot dogs. Dust be careful not take this too far. (rdering too much inventory has a negative effect on your food cost and actually increases the odds that your kitchen staff might get careless and waste more food. 'uild>to amount" The build%to amount is just another way of saying par level. W hen ordering, you

essentially need to 6build6 your inventory to par level. $efore purchasing food, you should have build%to amounts or par levels in place to know how much you need to order every time. (rdering too much can add to your weekly expenses and increase food costs for the period. *urchase too little, and you might run out of food or supplies before the next delivery. To determine the order amount you need for your restaurant, take the 6build%to amount6 and subtract the amount you have on hand.

or instance, as you look through your inventory, you see that you only have one case of potatoes on hand. Bour par level for potatoes is five cases.

)sin! an
&roCectin! Sales $or Accurate
Determinin! Your &roCected Sales etermining your projected sales is one way can help you estimate about how much business you will do between the time you placed the order and the time you receive it. 5se the following guidelines to determine the projected sales# 9. :. ;. E.

/stimate the per person check averages for dinner sales throughout the week. -ake an approximation of how many guests your restaurant will see for the dinner meal period each day. Total the customers and multiply by the estimated check average. >epeat the above steps for all meal periods and any other sales, such as bar sales.

The total guests attending dinner service throughout the week is estimated to be 011 guests.

Example 9. :.

;.

E.

The check average for dinner sales are typically I9 per person. etermine this by looking at check averages in the *oint of
>epeat this calculation to determine the total projected sales, which includes lunch sales, bar sales, sales during off%peak hours and sales from catering.

Bour projected sales total is just an estimate, of course, based on previous sales, or even how much your restaurant brought in at the same time last year, if your restaurant has been open that long. "fter a few orders you will get a better feel for your sales trends. This is just another way to get a feel for how much business you will do in the coming days, and if you need to order extra inventory or not.