Budgeted Labour Cost Percentage
CRFA Staffing Averages
Position performance analysis
A Labour Matrix Analysis
Use the productivity rates of good employees as a basis to set labour standards for average employees.
Keep productivity rates at the levels initially established, despite increases in employee efficiency and proficiency.
Rely strongly on standards developed in the industry for other similar operations.
Incorporate all of the above points
Compressed staff positions
Variable staff positions
Shared staff positions
Fixed staff positions
An unexpected increase in business volume will increase fixed labour expenses.
Managers have more control over fixed labour expenses than variable cost expenses.
A goal of food and beverage managers should be to eliminate all fixed labour expenses.
Fixed labour expenses are costs associated with the minimum number of employees needed to operate a business.
Compressed work schedules.
Staggered work schedules.
Expanded work schedules.
Rotated work schedules.
Multiplying standard labour hours by the average hourly rate.
Dividing total revenue by the number of guest served.
Multiplying # meals served by the guest check average
Dividing the total labour cost projected by the staffing guide by the estimated total revenues.
2% over budget
2% under budget
16% over budget
16% under budget
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