A Labor Equation that Makes Better Dollars & Sense - Jim Taylor of BenchmarkSixty

So far our labor series has touched on the need for emphatic leadership & positive modern company culture in restaurants. However, we have yet to discuss why restaurants ALSO need to modernize how they look at their P&L → ditch looking at labor costs as a percentage of gross sales. Your focus should instead be on employee productivity, zoning in on a ratio of labor costs to guests, rather than labor costs to sales. 

To help us explore the importance of how labor data is viewed in modern restaurant operations, Jim Taylor joins us to continue our all-important conversation about the impact of an employee-first approach.  

Jim Taylor is the CEO and Founder of BenchmarkSixty. After 20 years in restaurant operations, Jim is now helping restaurants change the way they look at and manage labor costs in order to protect both people AND profit!

Moments to Listen For:
• Restaurants Only Need 4 Pieces of Data to Measure Success
It’s high noon for restaurants to fully embrace data as part of their operations. However, jumping into the deep end can also be rather intimidating. To start, Jim suggests restaurants understand the core 4 data points – customer count, average wage, average customer spend, and how many hours your staff is working.

• Look at Labor from a Manufacturing Perspective
A modern restaurant is one that is can provide a quality experience for guests with efficient use of labor. By thinking more about the output and productivity of a restaurant, operators can eventually predict how many employees are needed to get the job done.

• The Number One Stressor in Restaurants: Scheduling and Pay
Managers fear whether they’ll be able to hit labor targets, while employees are stressed about unpredictable schedules. As an operator, bringing in out of the box ideas such as daily salaries, flex days, unlimited vacation, and even a four-day workweek can show you care and appreciate every member of your team.

Resources:
• Labor Series: We’re In The People Business with Amir Mostafavi
• Labor Series: Using Technology to Create a Healthier Work Environment
• The Great Restaurant Resurgence

Connect with Jim on LinkedIn or at BenchmarkSixty.

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