Luke Fryer’s Post

By championing employee development and promoting internal growth, operators can cultivate a future where frontline workers see hospitality as the incredible career path that it truly is.

Labor audits: Managing labor efficiently is pivotal for restaurant success, especially in the face of rising wage rates. In my experience, many restaurants overlook crucial aspects of labor management, leading to significant financial losses. Here are some common ways employees steal time/create labor losses, impacting your bottom line: 1. Inflating Work Hours: Managers, often with access to time editing tools, may inflate work hours, even their own, resulting in fraudulent time records. (This is the most common) 2. Unapproved Overtime: Employees working extra hours without proper authorization can lead to inflated labor costs. 3. Not Clocking Out for Breaks/Missed Breaks: Many employees avoid clocking out for breaks, taking multiple breaks while still on the clock. 4. Buddy Punching: When a colleague clocks in on behalf of another employee who is not present. 5. Ghost Employees: Using old employees or creating fictitious ones in the payroll system to divert wages. This is usually done by RGM's. Monitoring other factors during labor audits is equally crucial: 1. Minor Labor Compliance: Non-compliance with minor labor laws poses the risk of state audits and substantial financial penalties. 2. Taking Time Away from Employees: Managers, under pressure to meet labor metrics, may purposefully take earned time away from employees. When this happens it is a very sticky situation and needs to be handled properly. If your organization doesn't perform labor audits on a regular basis, I guarantee you are leaving a large amount of $$$ on the table. If you need help managing your labor or auditing your labor, please reach out: restaurantlpsolutions@gmail.com #RestaurantIndustry #hospitality #FoodService #RestaurantManagement #timemanagement #lossprevention #FoodandBeverage #timemanagement #timeismoney

The Overturning of the 80/20 Tip Credit Rule: What Employers Should Know The recent overturning of the 80/20 tip credit rule has significant implications for restaurant operators. Here’s what it means and what employers should do next. What Was the 80/20 Rule? The 80/20 rule required that tipped employees be paid the full minimum wage if they spent more than 20% of their time on non-tip-generating tasks, like cleaning or setting tables. This aimed to protect employees from being overburdened with side work but added complexity to managing labor. What Employers Should Do Now For restaurant owners and operators, now is the time to review labor practices. While the rule’s overturning offers flexibility, maintaining fairness and operational efficiency is crucial. Consider the following steps: 1. Reevaluate job duties: Ensure tipped employees primarily engage in tip-earning tasks to maintain focus on customer-facing activities. 2. Open communication: Keep employees informed about their roles and compensation, especially when assigning more non-tip-generating tasks. 3. Review wage practices: Confirm compliance with federal, state, and local wage laws, as some states may still have regulations around tip credits. 4. Training and efficiency: Cross-train employees to boost operational efficiency, but avoid overloading them with non-tip work. Looking Ahead The overturning of the 80/20 rule offers operational flexibility but comes with the responsibility to maintain fair labor practices. By balancing employee duties and ensuring compliance with wage laws, restaurants can retain a motivated workforce and provide excellent service.

Labour % Employee % Staff % For restaurant owners, managing people costs is an ongoing challenge—one that plays a crucial role to your bottom line. You need a great team to run a successful restaurant, but it's vital to keep your labour percentage in balance to ensure profitability. Here are 5 strategies we use to help keep your employee costs in tune: 1. Accurate Forecasting: Review historical data to predict your staffing needs. Aligning your schedule with forecasted sales can avoid overstaffing during quieter times and vice versa. Note to factor in Employers NIC, Pension costs and Holiday Pay! 2. Cross-Training Staff: Train your team to take on multiple roles. This not only boosts flexibility during shifts but also reduces the need for extra staff. 3. Technology Integration: Use scheduling and payroll software to streamline your operations and gain real-time insights into labour costs. This will minimise costly overtime and enhance overall efficiency. Correct Implementation of software is key! Paying for professional assistance at the start will pay dividends in the future 4. Regular Audits: We regularly review your employee percentage against industry benchmarks. Even small adjustments can significantly impact maintaining healthy margins. 5. Incentivise Efficiency: Foster a culture of efficiency by setting KPIs and offering incentives. A motivated team can achieve more with less, and in turn keep staff costs in check. Monitoring your labour percentage isn’t just about trimming costs—it’s about smart planning that maintains a profitably balanced business. #RestaurantManagement #LabourCostControl #Efficiency #Profitability #ViewPointPartners

Labor costs typically consume a significant chunk of your budget, approximately 30% to 35%. Within this, hourly wages often account for 20% to 25%. With escalating minimum wages and increasing benefits costs, managing this expenditure becomes challenging. However, ingenious labor management strategies can strike a balance, ensuring costs are contained without compromising service quality. A. Labor Cost Evaluation - Ensuring the financial robustness of your restaurant B. Optimal Scheduling - Tailoring employee schedules in tandem with demand ensures resource optimization C. Efficient Time Management - Curbing overtime and instating rigorous timekeeping protocols Contact McFadden-Finch's restaurant marketing consultants today to kickstart your brand development journey! 𝗖𝗢𝗡𝗡𝗘𝗖𝗧 𝗪𝗜𝗧𝗛 𝗨𝗦: Call us today: O: (800) 994-9028 || P: (510) 929-5432 || F: (800) 210-5952 Email: executive.team@mcfadden-finch-group.com Website: https://lnkd.in/ek7-pVfP Facebook: https://lnkd.in/gH8Ydu7w Instagram: https://lnkd.in/gwVKqGpj McFadden-Finch’s Restaurant Consultancy Services Team is here to elevate your business. Our seasoned food and beverage experts have enriched establishments in major cities like Chicago, Dallas, Denver, Las Vegas, Los Angeles, Portland, Washington DC, Seattle, Phoenix, and more. Partner with us for unparalleled guidance. #LaborManagement #HumanCapitalManagement #restaurantmanagementtips #OperationsConsulting #MenuDevelopment #RestaurantTurnaround #FoodTruckConsulting #FeasibiltyStudies #CustomDesignDevelopment #McFaddenFinchGroup #RestaurantConsultingServices #FoodServiceConsulting #RestaurantManagementConsulting #HospitalityConsulting #RestaurantMarketingStrategies #FoodandBeverageConsultingCompanies #RestaurantBrandingConsultants #HospitalityManagement #NutritionAnalysis #MenuDevelopment

Some interesting stats came out of a Employment Policies Institute survey Out of the 182 limited service restaurants (fast food) surveyed in California 98% of restaurants raised menu item pricing & 93% plan to do so next year 89% reduced the number of employee hours & 87% plan to do so next year 70% made staff cuts or consolidated positions & 74% plan to do so next year 74% said there is a greater chance they shut down This is more of the knee jerk reaction to the increased minimum wage We will see how the industry adapts over the next few years Automation will be at the center of most LSR operations moving forward #automation #quickserverestaurants #QSR #minimumwage #kiosks

The right to a ‘decent’ wage should not be controversial. Employees are strategic stakeholders in companies, often called the ‘greatest assets’ of companies. Isn’t paying your greatest assets a living wage simply common sense, helping to attract top talent and employee loyalty as a culture of shared value supports long-term cross-stakeholder value optimization? Shareholders and broader stakeholders win when collaboration enables productivity. Good on Michelin for recognizing this fact. Companies that don’t recognize this fact are so short-term focused that they don’t pay proper attention to the fact that long-term value depends on people. Quoting Michelin’s CEO in the article - “If workers are just in survival mode, it’s a big problem,” Mr. Menegaux said in an interview. “When the wealth distribution in a company is too unequal, that’s a problem, too.” #responsiblebusiness #sustainablebusiness #esg #sustainability https://lnkd.in/g669gQwy

Dry #promotions leave a bitter taste, just like wine with too many tannins. It's time for a change. Examine your organization’s approach to promotions and #pay practices. #EqualPay #PayTransparency #CareerDevelopment #HR https://ow.ly/VVMx50RHn1F

Low salaries for employees may seem like a cost cutting measure, but it's actually a terrible idea. Especially, when your employees can see themselves they are being underpaid. In fact, higher wages tend to reduce turnover and attract higher quality, more productive employees. This means that wage rates do not equal labor costs, because if people are more productive, labor costs are lower even though their rate of pay may be higher. Michelin is setting an example for other companies by considering employee wages as a focus of efforts to be more socially responsible. #Wages #Health #Wellbeing #Productivity #Turnover

To handle the challenge of rising minimum wages without breaking the bank, it's all about being smart and flexible. Mix in some tech solutions, get ahead with your scheduling, beef up your team's skills, and make sure your staff sticks around. The restaurant biz is always shifting, so staying on your toes with tech that helps you make sharp decisions is a game-changer. If you're still juggling a bunch of Excel files to keep track of your team, it might be time to think about getting some restaurant management tech. It'll make your life easier and set you up for the long haul.