Chapter #16–about Controlling Payroll Costs & Employee Turnover

A supervisor in a F&B operation is least likely to have a work schedule that varies in relation to changes in business volume. This is because supervisors are responsible for overseeing the operations and managing the staff, rather than directly performing tasks that are affected by changes in business volume. Dishwashers, cooks, and servers are all frontline positions that directly interact with customers and their workload can vary depending on the number of customers and orders. However, supervisors typically have more fixed responsibilities and their schedules are less likely to be affected by changes in business volume.

Variable staff positions are likely to have work schedules that vary in relation to changes in a restaurant's volume of business. This means that the hours and shifts of these staff members can fluctuate based on the demand of the restaurant. For example, during busy periods, such as weekends or holidays, these staff members may be required to work longer hours or additional shifts to accommodate the higher volume of customers. Conversely, during slower periods, their hours may be reduced or they may not be scheduled to work at all. This flexibility allows the restaurant to effectively manage its workforce based on the level of business activity.

Staggered work schedules are used to adequately staff a F&B operation during periods of uneven work flow. This technique involves scheduling employees to start and end their shifts at different times, allowing for coverage during peak and off-peak hours. By staggering the work schedules, the operation can ensure that there are enough staff members present during busy periods while also maintaining a balanced workload during slower times. This helps to optimize productivity and customer service while minimizing labor costs.

If the manager wants to emphasize productivity, it would be best to express labour performance standards in terms of labour hours. This means that the focus is on the amount of time employees spend working, rather than the cost of their labor or other factors. By measuring productivity in terms of hours worked, the manager can assess how efficiently the staff is utilizing their time and identify areas for improvement.

The budgeted labor cost for Thursday's lunch period was 32% of the actual lunch revenue, which is $1,250. Therefore, the budgeted labor cost would be 0.32 * $1,250 = $400. However, the actual labor cost for the lunch shift was $425. To determine how close the labor costs were to the budget, we need to calculate the difference between the actual labor cost and the budgeted labor cost. The difference is $425 - $400 = $25. To express this difference as a percentage of the budgeted labor cost, we divide the difference by the budgeted labor cost and multiply by 100. ($25 / $400) * 100 = 6.25%. Therefore, the labor costs for Thursday's lunch period were 6.25% over budget.

When constructing staffing guides, managers should use the productivity rates of good employees as a basis to set labor standards for average employees. This means that the performance of top-performing employees should be used as a benchmark for setting expectations and standards for the average employees. By doing so, managers can ensure that the labor standards are realistic and achievable for the average employees, leading to better overall performance and productivity. This approach takes into account the capabilities and potential of the average employees while still aiming for high standards.

The additional revenue needed to cover the unscheduled increase in labor costs can be calculated by multiplying the average additional hours worked per week (15) by the number of weeks in a year (52) and then multiplying that by the average hourly wage ($7). This gives us $5,460. Therefore, the correct answer is $5,460.

Fixed labour expenses are costs associated with the minimum number of employees needed to operate a business. This means that regardless of the business volume, these expenses remain constant. An unexpected increase in business volume will not affect fixed labour expenses because they are not dependent on the level of activity. Managers have more control over variable cost expenses, as they can adjust the number of employees or hours worked based on the business volume. The goal of food and beverage managers should not be to eliminate all fixed labour expenses, as they are necessary for the basic operations of the business.

Position performance analysis is a tool that helps a Food & Beverage manager determine labour standards for each position and shift. This analysis involves evaluating the performance of employees in different positions to identify their productivity levels and efficiency. By comparing the performance of different positions, the manager can determine the appropriate labour standards for each position and shift, ensuring that the right amount of staff is allocated to meet the demands of the business. This analysis helps in optimizing staffing levels, reducing labour costs, and improving overall operational efficiency in the Food & Beverage industry.

The correct answer is dividing the total labour cost projected by the staffing guide by the estimated total revenues. This calculation allows for a more accurate determination of the labour cost percentage. By dividing the projected labour cost by the estimated revenues, it takes into account the specific needs and requirements of the business and provides a more realistic percentage. This method helps in budgeting and forecasting the labour cost as it considers the expected revenue and ensures that the labour cost is in line with the financial goals of the business.