Chapter 30: Control Labor Cost Without Sacrificing Service or Quality

From the parking attendant to the chef, the people who serve your customers are your restaurant. You can have a prime location, a beautiful dining room, and impeccably prepared food and have it all spoiled by a rude server, sloppy busperson, or an inattentive janitor. Your restaurant’s success is based upon your ability to locate, hire, and solidify a group of people into your Customer Service Team.

The food service industry has long been plagued with an inadequate workforce and exceptionally high turnover rates. The increased demand for service workers and culture changes within the workforce means less educated recruits, more non-English speaking employees, and fewer younger people interested in restaurant work.

Whether you own a celebrity-filled, trendsetting establishment or a truck-stop diner, the situation is the same. Where do you find good employees? How do you keep good employees? How can you get your money’s worth?

Labor costs typically run 25 to 35 percent of your budget. Depending upon your menu offerings, it can equal or exceed your food costs. Keeping your prime costs (food and payroll) in the 60 to 69 percent range is your profit-making goal. Simply cutting staff will not do it. Your aim should be to get the highest productivity possible for your money. But to save money without losing quality of service, you have to start at square one.

BUILDING YOUR TEAM — THE FOUNDATION OF SUCCESS

Good food and good service are the foundation of a successful restaurant. As a service industry, restaurant profit margins are notoriously slim. Your restaurant’s profitability is a direct result of your ability to control your service costs without sacrificing your customers’ needs and expectations.

SERVICE IS PARAMOUNT

Keep firmly in mind that service is paramount. Surveys show that 83 percent of customers will not return to a restaurant if they experienced poor service. Sixty-one percent mentioned slow service as a factor. However, we are not just talking about the front-of-the-house staff — every employee plays a vital role in good customer service. If your customer finds better service elsewhere, what do you lose? Just one customer, right? But if that customer spent $10 in your establishment twice a week: $10 x 2 = $20 x 52 weeks = $1,040 a year. What if you lose five customers or even ten? One server with a bad attitude can cost you her salary or more in lost revenue and permanently damage your reputation within the community. Good service is a combination of:

• Strong commitment by management. Standards and expectations backed by a respectful and partnership attitude.

• Positive employee attitudes and motivation. A desire and willingness to serve others and good communications.

• Good training methods. Top-notch employee skills and abilities.

• Practical approaches and procedures. To work together efficiently.

• Labor-saving devices. An environment filled with tools and equipment that promote good ergonomics and maximum productivity.

PROFITS ARE EVERYONE’S BUSINESS

As a restaurant owner you have a strong personal motive to be profitable — and so do your employees. Reducing your labor costs wisely and compassionately balances the needs of the organization with the needs of its team members. Reducing your labor costs requires:

• Good hiring practices. Search for the right person to fill the job. Look beyond the basic skills for a person that fits your restaurant’s personality. Learn more about interviewing employees by reading 501+ Great Interview Questions for Employers and the Best Answers for Prospective Employees. To order call 800-814-1132 or visit www.atlantic-pub.com (Item # 501-02, $24.95).

• Balanced staffing levels. Schedule ample people to get the job done and satisfy customers without wasting resources.

• Greater employee productivity. Teach them how to work smarter, not harder.

• Excellent people skills. Communicate well with managers, line supervisors, support staff, and customers. Loyal employees create loyal customers.

• Sound financial decision making. Analyze and invest in labor-savers. Research and utilize tax breaks and business support programs.

PEOPLE ARE ASSETS

You would not think too highly of someone who bought a beautiful automobile and then never bothered to clean it, change the oil, or tune it. Who would spend so much and not protect their investment? Well, employing one person can cost as much as a car and unless you are diligent, you, too, could be wasting your money.

Invest wisely. Every dollar you spend (directly and indirectly) to “purchase” and maintain an employee is an investment in your business. Protecting your human assets and securing your investment is integral to your labor-saving efforts. Are you investing wisely?

HIGH TURNOVER RATES

Employees leave after three months; why should I spend the money only to have them move to a competitor? Because the industry creates high turnover rates and you have a responsibility to your business to provide a solution. Exceptionally high food service turnover rates are deeply rooted in historical attitudes and a business model based upon spending as little as possible for workers and your “factory.” By ignoring workers’ physical and emotional needs, restaurant owners have created an industry filled with some of the “worst jobs.”

• Address problems. Certainly you cannot solve these industry problems single-handedly; however, you can play an active role and reap the benefits of addressing such factors as low pay, excessive stress, inferior work conditions, limited career potential, poor economic security, and overwhelming physical demands.

• Costs. “I cannot afford to pay more!” But you already are. You are paying for it through costly recruiting and training, reduced productivity, increased food costs, inconsistent customer service, and larger overhead. By redirecting these dollars towards maintaining and enhancing your human assets, you will be investing in your business instead of just paying to keep the doors open.

• Employee satisfaction. Employee satisfaction is not just a touchy-feely goal — it is a key to your success. To learn more about building happy and productive employees, read:

o How to Hire, Train & Keep the Best Employees for Your Small Business by Dianna Podmoroff, available at www.atlantic-pub.com, (Item # HTK-02, $29.95).

o 365 Ways to Motivate and Reward Your Employees Every Day — With Little or No Money by Dianna Podmoroff, available at www.atlantic-pub.com, (Item # 365-01, $24.95).

o Keeping Your Employees at www.keepemployees.com.

o First, Break All the Rules: What the World’s Greatest Managers Do Differently by Marcus Buckingham and Curt Coffman.

o Follow This Path: How the World’s Greatest Organizations Drive Growth by Unleashing Human Potential by Curt Coffman and Gabriel Gonzalez-Molina.

REDUCING YOUR PEOPLE COSTS

Notice I said PEOPLE costs. Why? Because if you only think about cutting labor-hours, you will lose site of your objective: to please your customers and be rewarded with profits. Your business success is based upon your success at gathering together a group of workers with different skills and experiences to produce a quality product. Your most valuable assets — your employees — are filled with personal desires and expectations. You must tap into their need to be valued and respected. Here are three outstanding resources on people management, mentoring, and building partnerships with your employees:

• The Encyclopedia of Restaurant Training by Douglas Robert Brown, available from Atlantic Publishing (Item # ERT-02, $79.95). This restaurateur-written book offers excellent advice on hiring and leading employees. For more personnel and customer service advice, visit www.atlantic-pub.com.

• Managers as Mentors by Chip R. Bell, a nationally recognized customer service guru. This book explains creating strong employee relations; available on the Web at www.chipbell.com.

• Restaurantowner.com. This site provides extensive guidance for restaurant owners. A “Food for Thought” passage sums up their “people business” philosophy: “Your effectiveness as an owner or manager is directly related to your understanding of people and the quality of your interactions with your staff.”

MANAGEMENT COMMITMENT

Your commitment to quality service is reflected in how you and your management staff conduct yourselves. Take a look at your behaviors and actions. Are they how you want your employees to act? Below are some thought-provoking questions on leadership. A “yes” answer to any of these means you should invoke the first rule of good leadership — leading by example.

• Do you come to work grouchy? Your employees will copy your mood. Greet your employees with a happy, friendly attitude — the way you want them to greet your customers.

• Are you sloppy or careless in your work habits? Are you late for appointments or forget to follow-up on requests?

• Is your appearance unprofessional? If you dress sloppily, your employees will resent having to meet higher standards and will slowly begin to ignore your dress code.

• Do you disobey your own established standards? If you pour doubles for your friends at the bar, your bartenders will start to do the same for their friends. If you ladle on extra portions, look for rising food costs because your kitchen staff will stop measuring too.

• Do you avoid addressing problems when they arise? When you see someone skirting established standards, promptly and tactfully remind them (but never in front of customers). If you let mistakes slide, soon your standards will be nothing but “hot air.”

• Do you ramble or lecture when answering questions or giving directions?

• Keep it short and simple or your employees will “zone out” and miss the point. Always make sure they understand.

• Mutual respect plays an enormous role in good leadership. Respect is something you earn and not just because you sign the paychecks.

• Do you share your goals with your employees? Help reduce employee discontent by sharing your short- and long-term business goals. They will feel more valued and in greater control of their work.

• Formal, written policies and procedures are very important for setting standards. However, a large part of setting standards is done through leading by example.

HIRING TEAM MEMBERS

Hiring is the start of a long-term relationship between employer and employee. Or at least it should be. Can you imagine hiring a full staff of qualified workers and having them stay with you for years? It is rare in the restaurant business, but it is not an unattainable goal. Hiring is more than just finding warm bodies to fill positions. You need to find competent, hard-working people who are a good fit for your restaurant personality.

YOUR CHALLENGE

Your challenge as a restaurateur is to balance your business needs with the needs of the people who will spend the majority of their day in the service of your customers. Perhaps your greatest challenges as an employer are the economic realities of a service industry where the majority of jobs are low paying with low social status. Federal reports show food prep and serving wages average $7.72 an hour and 75 percent make less than $8.50 an hour — the lowest wages among the major occupational groups studied. The result is a shortage of service workers and turnover rates of 250 percent for line staff and 100 percent for managers.

RESTAURANT EMPLOYEE CLASSIFICATIONS

Your mix of employees will include seasonal, part-time, full-time, and career-oriented employees. The list below is in pyramid order — with the top level being the smallest number within an organization and by highest to lowest salary.

• Executive careers. Comprehensive fiscal responsibility, college educated, may report to owner and/or stockholders (President or CFO).

• Managerial careers. Manages people and/or things, college educated (General Manager or Human Resources Director).

• Artisans. Creative talent may be self-taught based on natural abilities, on-the-job training, or career training (Lead Chef or Pastry Chef).

• Skilled workers. Valuable skills acquired from work experience or schooling (Bookkeeper, Wine Steward).

• Semi-skilled workers. More complex task with indirect supervision, some prior experience or training (Server or Baker).

• Unskilled laborers. Manual tasks with direct supervision, no special training (Janitor or Busperson).

THE RIGHT PERSON FOR THE JOB

Finding the right person for the job starts with a solid understanding of what your business team needs. As the saying goes, “You can’t get what you want if you don’t know what it is.”

Before you start recruiting, you need to make some decisions that will become the basis for a written job description. The following sections will help you gather your thoughts and prepare you for the writing process.

Clarifying Your Needs

Whether you are hiring your first employee or adding to a staff of 75, there are five primary areas you should consider before you place that classified ad.

1. Tasks employee(s) must accomplish.

2. Skills and experience employee(s) must possess.

3. Training levels you must or are willing to provide.

4. Personality and attitude your customers expect.

5. Budget available for salary, taxes, and benefits.

Tasks

Identify the tasks (duties) that must be completed during the shift, week, month, and beyond. Categorize each activity by:

• What will they do? Detail action (clean, cut, and store salad ingredients; accept food delivery, compare to packing list, sort and store; or answer phone, accept, and schedule reservations).

• Where will they do it? Front- or back-of-the-house.

• When will they do it? Before, during, or after active serving times.

• How often must they do it? Daily, weekly, monthly, or other.

• What is a success? What is acceptable performance? What is award-winning performance?

Skills and Responsibilities

Classify each task by skills required and level of responsibility. Typically, the greater the skills and responsibility level required, the higher the salary you will pay. Identify areas where less costly labor can be used or whether you should reward someone for accepting more responsibility.

Skills and Responsibilities
Skill Level	Responsibility Level
Management Skills • Dining room supervisor • Beverage manager	Profit and Loss Responsibility • Executive chef • Banquet manager
Prep Skills • Pastry chef • Sauce cook	Reports “As Needed” To Superior • Soup cook • Baker
Customer Service Skills • Server • Bartender	Empowered To Act on Behalf of Restaurant • Hostess • Dining room manager
Support Staff Skills • Busperson • Receiving clerk	Direct Daily Supervision • Server • Bartender
	No Significant Decision-making Duties • Dishwasher • Janitor

SKILL AND EXPERIENCE TRAINING EXPECTATIONS

All good companies train constantly. Learning is a never-ending process that enhances employee skills and your service quality.

Consider comprehensive training. Comprehensive job training programs and perhaps even life-skill training may be needed. New hires with little to no prior work experience or no food service history can be developed into loyal employees through in-house mentoring and training or work-study programs.

Some restaurant positions are, by nature, trainee jobs. In this case, your job description will also include an outline of the training program that the new hire must complete before moving beyond their probationary period.

Develop skilled workers. With restaurant owners nationwide routinely reporting a shortage of skilled workers, you may be forced to develop your own experienced workers. Many positions may have to be filled by trainees.

Above all, train your employees properly. The Encyclopedia of Restaurant Training (available at www.atlantic-pub.com) is an out-of-the box employee training program for all food service positions. From orientating the new employee to maintaining performance standards to detailed training outlines and checklists for all positions, this book will show you how to train your employees in all positions in the shortest amount of time. One of the best features of this book is the companion CD-ROM, which contains the training outline for all positions in MS Word, so you can easily customize the text. There are numerous training forms, checklists, and handouts. There are job descriptions for all positions including General Manager, Kitchen Manager, Server, Dishwasher, Line Cook, Prep Cook, Bus Person, Host/Hostess, and Bartender.

Training videos are also a good investment. The Complete Wait Staff Training Course Video is a 53-minute, high-quality wait staff training video, where your staff learns how to consistently deliver quality service that makes customers come back and tell others about their memorable experience. Study guides and tests are included. Topics covered include: alcohol sales and wine service; preparing for service; taking beverage orders; hosting and greeting guests; correct service procedures; taking, placing, and picking up the order; serving food; and completing the service. Available at www.atlantic-pub.com or by calling 800-814-1132.

YOUR BUDGET

Employee wages are influenced in each community by the cost of living, available workforce, competition, and social status of the position. Your financial ability to pay for certain skills and training may limit your expectations for a position. Your compensation package (salary and benefits) must be appropriate for the duties and responsibility outlined in the job description.

Whether you have written several pages of job tasks or just scribbled some thoughts on a napkin, it is time to start writing an overview of the job you seek to fill.

WRITING JOB DESCRIPTIONS

A job description is a detailed definition of a job and a list of the specific tasks and duties the employee is responsible for daily, weekly, and monthly. The more complete the job description, the simpler the task of training. A good job description will help you and your staff to:

• Hire the best candidate for the job.

• Understand required job skills and expected responsibility levels.

• Develop and complete training programs.

• Create goals for employee growth and potential salary increases.

Job Description Tips and Resources

Below are some ideas and resources to help you create useful job descriptions.

• Ask your staff. Their input can be invaluable. You will also discover opportunities to redistribute duties and reward better employees with “prized” assignments.

• Incorporate attitude standards. Descriptions should include attitude standards such as, “Will answer phone with cheerful voice within three rings.”

• Hire a human resources expert. Find expert help from the Human Resources Consultants Association (www.hrca.com) and the Society for Human Resources Management (www.shrm.org).

• Have an attorney or human resources consultant review the description for legality. Well- written job descriptions can help you defend yourself in wrongful termination or other employee litigation.

• Review job descriptions posted on the internet. Use keywords “restaurant job description” and “[insert job title] job description” to see how other restaurant owners explain the position.

• Buy a book. Contact the National Restaurant Association at 800-482-9122 and request publication MG999, Model Position Descriptions for the Restaurant Industry.

• Read about creating job descriptions. National Restaurant Association has helpful articles at www.restaurant.org/business/ bb/2000_05.cfm and www.restaurant.org/rusa/magArticle.cfm?ArticleID=754.

YOUR EMPLOYEE PACKAGE

Employees are “paid” in a variety of ways: wages, tips, meals, profit sharing, bonuses, commissions, insurance coverage, vacations, tuition reimbursement, childcare assistance, transportation subsidies, retirement plans, and family leaves.

Paying minimum wage and offering no benefits is one way to keep your labor costs low, but rarely will you be hiring the best available and you will constantly be dealing with high turnover and employee dissatisfaction. Although money is not the only motivator, it certainly is an important factor in attracting and retaining quality employees. You have to think creatively and act aggressively to design a cost-effective yet valuable employee package.

Wages

No other industry has such divergent wage standards between federal, state, and local jurisdictions. The Fair Labor Standards Act (FLSA) establishes federal work standards. However, these do not apply if state or local laws are more stringent.

Federal law requires that you pay the minimum wage ($5.85 per hour as of July 2007) for all hourly employees (except those who receive more than $30 a month in tips) and youth wages ($4.25 per hour as of 2006) for the first 90 days. Superseding laws may require that the prevailing minimum wage be paid even if the worker earns tips; others allow for a reduced hourly rate for tip earners. To learn more about wage regulations:

Visit the department of labor site at www.dol.gov for current wage and hour laws and links to state information or contact your local State Employment Division. State minimum wage rates can be found at www.dol.gov/esa/minwage/america.htm. Tipped employee wages by state are located at www.dol.gov/esa/programs/whd/state/tipped.htm. Read what the National Restaurant Association has to say about minimum wages at www.restaurant.org/legal/law_minwage.cfm.

Gratuities

In recent years, IRS and court rulings have created a lot of headaches for the restaurant industry in regards to taxing tips. With ongoing litigation, your best bet is to read the current legal bulletins produced by state and national restaurant associations. The National Restaurant Association provides tip resources for employers and employees at www.restaurant.org/legal/tips/resources.cfm. To protect your business from IRS audits and tax liabilities, encourage your employees to accurately report tips and hold employees responsible for tip income by having them read and sign a form that explains tipping rules.

You should also consider reading The Complete Guide to Tips & Gratuities: A Guide for Employees Who Earn Tips & Employers Who Manage Tipped Employees and Their Accountants. This book deals with all aspects of tips and gratuities. For the employee or self-employed, learn how to earn more tips and how to properly account for and pay taxes on them. For the employer, learn how to manage and properly account for the taxes on tipped employees. For the bookkeeper and accountant, get the latest on tax and withholding laws. Available at www.atlantic-pub.com or by calling 800-814-1132.

Employee Benefits

Fringe benefits are an important part of compensating your employees. These are all voluntary rewards and enticements, as the law does not mandate them. Do not overlook the emotional impact (self-esteem, peace of mind, confidence, security, and safety) these have on employees when developing your package.

To learn more about employee benefits, visit BenefitNews at www.benefitnews.com, BenefitsNext at www.benefitsnext.com, or CCH Business Owner’s Tool Kit at www.toolkit.cch.com.

• Holidays. Pay for closed holidays or offer comp time for open holidays.

• Sick days. Grant a set number of annual sick days. But to encourage attendance, offer a cash bonus for unused days. Allow staff to convert sick days to family leave or vacation days.

• Vacations. How employees take their vacation can create some unnecessary payroll costs. Learn about potential savings at www.toolkit.cch.com/text/P05_4385.asp.

• Family leave. Help reduce employee stress by offering family leave options. You might offer short leave periods for bereavement and funerals and extended leaves for maternity/paternity/adoption or long-term family care. For information on family leave under the Family and Medical Leave Act (FMLA), see the Department of Labor information at www.dol.gov/elaws/fmla.htm.

• Other time off. Jury duty, voting, and military leave may be required by law in your state.

• Offer discounted meals for employees dining with immediate family members. Thank workers and their families.

Costly but Valuable Benefits

Employers who provide the “costliest” benefits are providing employees peace of mind and security. Although these benefits can escalate your total payroll costs, their value can be significant. Many of these benefits would be financially unattainable without even limited employer support. By having these benefits, you will reduce turnover and the cost of benefits is usually less than turnover costs.

• Invest in health insurance coverage. Unless it is financially prohibitive, health insurance coverage should be your most touted benefit. Employer-paid premiums are rare, but sharing the cost and exploring partially self-insured plans can make it more affordable for everyone. It is the most desired benefit for job applicants.

• Talk to your accountant and financial advisor about retirement plans. Stock options, 401(k) plans, and IRAs can be created to attract career-minded individuals. Visit www.dol.gov/ebsa/compliance_assistance.html for information on federal pension plan law under the Employee Retirement Income Security Act of 1974 (ERISA).

• Offer life and long-term care insurance. Employees can benefit from tax-free life insurance coverage (up to $50,000) and long-term care insurance.

WHERE TO FIND YOUR NEXT EMPLOYEES

Searching for new employees can become a full-time job. Do not wait until you have a vacancy to develop contacts and personnel resources to draw from at a moment’s notice. Building your team members requires a continuous proactive search effort. Overall, it is most cost effective for a business to hire a fully qualified and experienced employee. So how do you find one? Below I have outlined a variety of places and ways to find loyal, hardworking employees.

• Employee referrals. Personal referrals can be strong candidates, as your reliable employees will typically have good friends. Offer a referral bonus of $50 to $300 (perhaps even more for managerial hires).

• Your competitors and peers. If you encounter an experienced worker when dining out, discreetly give them your card and let them know you are hiring and thought she might be a good candidate.

• Your customers. Another reliable referral. Long-term customers have a good feel for your environment and are great “word-of-mouth” advertising.

• Headhunters. Top managerial and “talent” positions may require a headhunter. These employment specialists have connections and contacts within specific industries. Expect to pay up to 33 percent of the new hire’s first year salary.

• Employment agencies. Semi-skilled workers can be found through employment agencies, but fees typically can outweigh benefits.

• Trade organizations. State and national hospitality and food service organizations offer employment services.

• Employment open house. Creating an open and friendly atmosphere puts potential employees at ease, builds great word of mouth, and establishes your business as a desirable workplace.

• Job fairs. Set up a booth at community job fairs. Sell your restaurant as a great place to work with great people.

• Unions. Many restaurateurs are “fearful” of unions, but quality employers who offer competitive compensation packages and good working conditions should not hesitate to take advantage of their job banks.

Advertising for People

“Help wanted” advertising is a common method for locating unskilled and semi-skilled food service employees. However, classified ads will not attract sufficient candidates for skilled, artisan, and managerial positions. The key is to select a medium (print or Web) and publication where your potential employees will be looking.

• Classified ads. Place text or display ads in print and electronic publications: local newspapers, school papers, and ethnic (native language) newspapers for your entry-level/trainee, unskilled, and semi-skilled positions.

• Your website. Include a link on your restaurant website to a “We are Hiring” page, detailing job opportunities and application procedures.

• Trade associations. Post jobs and search résumés at state and national restaurant associations’ and hospitality associations’ online job banks, newsletters, and magazines. Many hospitality and food service organizations also offer personalized recruitment services and training support.

• Summer job sites. Connect with students and recent graduates seeking summer jobs. Here are some sites to try are Work: A+ Summer Jobs at www.aplus-summerjobs.com, Seasonal Employment at www.seasonalemployment.com/summer.html and Summer Jobs at www.summerjobs.com.

Places to Find Help

• State employment divisions. Every state maintains a job bank of potential workers. Some states work like a private employment agency (but with no costs to you) to actively match employees and employers.

• Cable TV. Cable advertising can be surprisingly inexpensive. Your initial ad development cost can be amortized over several ad campaigns. Your local cable company can assist with ad production.

• At the movies. On-screen advertising can be a great way to connect with potential employees as most moviegoers are in your targeted age group.

• Billboards. Although not inexpensive, billboards can potentially reach thousands every day with your “help wanted” message.

• Radio. Ask your best employees for their favorite radio stations to reach potential team members. Radio stations can handle everything in-house for you.

• Résumé “archives” and rehires. High turnover rates means workers are frequently shopping for another job. “Leftover” or rejected applicants may be the right match now. Former employees (providing they left in good standing) may have found “the grass isn’t greener” elsewhere and be interested in returning.

• Senior centers. Need mature part-time support? Many active seniors are seeking to re-enter the workforce.

• Foreign worker agencies. Some service industries have discovered the benefits of hiring experienced foreign workers. More details on hiring foreign workers can be found at the Department of Labor at www.workforcesecurity.doleta.gov/foreign/hiring.asp. Also check human resource sites such as www.safehr.com/hiring_foreign_nationals_and_imm.htm.

Trainees for Hire

What do you do if you cannot find the right person for the job? Create one. Here are some ways to locate and develop people with potential:

• High school and community college career centers. Develop relationships with career counselors who can direct potential part- and full-time employees to you.

• Trade schools (food service, hospitality, and restaurant management). Work with guidance counselors to find students needing financial assistance. Participate in work-study programs.

• Students. Start your outreach before the student graduates. Offer tuition reimbursement or full sponsorship in exchange for guaranteed employment.

• U.S. Armed Services. Thousands of well-disciplined and dependable people leave active duty every year seeking civilian employment. See Corporate Gray Online at www.corporategrayonline.com, Transition Assistance Online at www.taonline.com, and Department of Defense at www.dmdc.osd.mil/ot/linkpage.htm.

• Federal, state, and local full-employment programs. Government, non-profit and faith-based programs offer employees a helping hand. Employers benefit from financial subsidies (reimbursement and tax credits), counseling, and off-site training.

• Displacement, relocation, internship, and school-to-work programs. Reach out to laid-off workers, rural areas (with typically higher unemployment), and high school and college students seeking a direct career path.

• Special-needs labor pool. Re-entry programs for the disabled, single mothers, welfare recipients, retirees, high-risk youth, Veterans, and non-English speakers.

• Foreign-born (non-English speaking) job placement services. English as a Second Language (ESL) training for workers and cultural advice for employers.

• Ticket to Work and Work incentive improvement act (employing the disabled). Department of Labor at www.dol.gov/odep/pubs/ek00/ticket.htm. Veteran employment. Department of Labor at www.dol.gov/vets.

• Overlooked labor pools. Thousands of people, every year, needing a second chance and “life saving” can be loyal and dependable workers, if given a chance. Like the “special-needs” work pool, there are numerous programs that provide financial, educational, and transition support for employers and employees. Contact such groups as United Way of America at www.unitedway.org.

Outsourcing, Temps, and Leasing

Have an occasional need for a specialist? Need extra hands for a banquet or large event? Do not want to waste your time on personnel matters?

• Seek out consultants to provide you with decorating, floral arranging, bookkeeping, marketing, graphic design and other “as needed” activities. Check your local Yellow Pages, Business-to-Business Directory, Better Business Bureau membership roles, or restaurant association.

• Explore independent contractors. These freelancers are responsible for all of their employment taxes and workers’ compensation insurance. Be aware of the regulations on using independent contracts by visiting Nolo Law for All at www.nolo.com/lawcenter/index.cfm or speaking with a legal advisor.

• Borrow an employee. In developing good relationships with other restaurant owners, you should explore referrals for workers who are looking to moonlight or pick up a few hours of extra work.

• Lease an employee. No hassles here as the leasing firm handles all human resources activities. This is not typically a cost-effective option, but circumstances may warrant it. Beware of “hiring” clauses that penalize you for direct hiring of placed individuals. For more information on employee leasing firms, also known as a Professional Employer Organization (PEO), visit PEO at www.peo.com/peo or the National Association of Professional Employer Organizations at www.napeo.org, 703-836-0466.

A DIVERSE WORKFORCE

When hiring and keeping food service employees turns into a full-time job, nurturing and growing dependable employees from diverse backgrounds becomes a necessity. Creating a diverse workforce is good for society and good for business. Below are some helpful suggestions and resources on creating a strong, diverse staff that includes the disabled, elderly, minorities, homosexuals, women, and people from various cultures and ethnic backgrounds.

• Buy a book such as Workplace Diversity: A Manager’s Guide to Solving Problems and Turning Diversity into a Competitive by Katharine Esty, The Diversity Toolkit: How You Can Build and Benefit from a Diverse Workforce by William Sonnenschein. or Peacock in the Land of Penguins by B. J. Gallagher Hateley and Warren H. Schmidt.

• Take a class on diversity. Contact local universities and community colleges for management to learn how to smoothly transform a group of individuals into a cohesive team. For online classes visit www.worldlearning.org/solutions/index.html. Research videos on diversity from Newsreel at www.newsreel.org/topics/diversity.htm.

• Take time to learn about other cultures. Sometimes language is not the only barrier. Cultural differences may cause miscommunication, hard feelings, and work problems. Working with people from specific cultures and ethnic groups requires patience and a willingness to learn.

• Search the Internet and read articles using keywords like “diverse workforce,” “diversity,” and “equal opportunity.” Look for articles like Supervising Across Language Barriers at agecon.uwyo.edu/riskMgt humanrisk/Supervisingacrosslanguagebarriers.pdf.

• Explore local minority-support organizations for English as a Second Language (ESL) classes, diversity programs, and educational support.

• Work with non-profit organizations to develop equal opportunity and diversity programs. Good places to start are Goodwill Industries at www.goodwill.org, National Adult Literacy at www.nala.ie, American Association for Affirmative Action at www.affirmativeaction.org, and National Organization for Women at www.now.org/issues/wfw/index.html.

SELECTING THE RIGHT CANDIDATE

If you have done a good job attracting qualified candidates, you should have a stack of résumés and applications. Unlike other fields, well-qualified workers may struggle with the written word and have had multiple jobs. Below are some tips on how to select the best candidates for face-to-face interviews.

• Read between the lines. Does this person have the right experience? Spot-check references for red flags.

• Why are they leaving their current position? Applications should ask the reason for leaving. When checking references, verify why the employee left. Conflicting stories are not a reason to toss the application, but it is a red flag needing attention.

• Is the application neat, legible, and filled out properly? If they cannot fill out an application properly, how well will they do with writing guest checks, ringing up sales, or following recipe directions?

• Are they a short-timer? If they change jobs every few months, they will most likely do the same with you. If everything else looks good, you may want to interview them anyway, but keep it in mind and explore why they move around so much.

• Conduct phone screenings. You can learn a lot from a two-minute phone call. Always ask questions that require more than yes or no answers.

o What are your career goals?

o What income level do you expect?

o What kind of career growth would you like?

o Ask one to three questions that verify a person’s knowledge and skills.

o Ask about work history gaps.

• Listen carefully and use your instincts. Is the person articulate and friendly? Are they hard to reach? Be careful what you ask. Many traditional interview questions are no longer legal or wise.

Getting Ready to Interview

Your next step is to schedule face-to-face interviews. Choose from three to six candidates. Set interview dates at least two days in advance for local applicants and two weeks in advance for out-of-state applicants. Explain when, where, and how long the interview will be, format of the interview, and what, if anything, they should bring with them. Tell them if you will be conducting tests.

Provide adequate directions along with a contact name and phone number.

Be prepared. Put together handouts and company introduction materials to present your restaurant as a great place to work. Create a quick tour to show off your facility and introduce candidates to key employees.

Improve your interview skills. There are plenty of good books, classes, videos, and websites to help. If you are nervous or inexperienced at conducting interviews, practice. Role-playing can be a great way to improve your interview skills. Rent tapes on learning how to improve interviewing skills. Job Interview (www.job-interview.net/index.htm) is a great site for interview advice or read one of these books:

• 501+ Great Interview Questions for Employers and the Best Answers for Prospective Employees by Dianna Podmoroff. Available at www.atlantic-pub.com or by calling 800-814-1132.

• High-Impact Hiring: How to Interview and Select Outstanding Employees by Del J. Still (2001).

• Hiring the Best: A Manager’s Guide to Effective Interviewing by Martin Yate (1993).

• 96 Great Interview Questions to Ask Before You Hire by Paul Falcone.

The Interview Process

The interview process can be stressful and nerve-racking for everyone. Your job as an interviewer is to elicit information from an uncomfortable interviewee while being a mind reader, psychologist, and salesperson. You will be asking probing questions, listening intently, judging attitudes and appearances, and trusting your managerial instincts. Below are some helpful resources for interviewing and selecting qualified employees.

• Web resources. For restaurant-specific advice, visit consultant Simma Lieberman Associations at www.simmalieberman.com/articles/interviewemp.html. For hiring systems, visit Unicru at www.unicru.com.

• Understand what characteristics, skills, and experience you need and what you can live without. Refresh yourself by reading through the job description and preparatory notes.

• Record your notes immediately. Remember, just like the employee, you are under stress and your memory can falter. Also, do not take any notes that might appear to be discriminatory. These are all fair game for opposing attorneys.

• Be prepared to answer the tough questions. You should be able to answer salary, benefit, and advancement questions along with work expectations and your business stability.

• Never over-promise. Do not indicate there are advancement opportunities when none exist.

• Create an interview team. Include supervisors and team leaders in the interview process. They can help you select people who not only have the skills but also the attitude your restaurant needs.

Ask Probing Questions

Be careful what you ask. Some questions are against the law, while others should be avoided to protect you and your business from discriminatory claims. For a list of illegal interview questions, visit Office.com at www.office.com/templates/page1.asp?docid=34.

• Ask all your questions at once, putting the burden on the interviewee. It will keep you from talking too much or leading the interviewee to the answers you want to hear.

• Ask essay-style questions that cannot be answered with yes or no. Use your own style of speaking, but ask questions such as:

o What would your former employer or coworkers have to say about you?

o Who was your best boss and why?

o Describe your favorite job.

o Was there anything at your last job that you did not get a chance to do or learn?

o Describe a disagreement you had with a supervisor and how you resolved it.

o If I were your boss, what would be the most important thing I could do to help you be successful?

• Bring the interview to a close with, “We have about five more minutes.” When people know they are running low on time, they get down to what is really important to them. Often this last-minute exchange can cement your impression of the candidate—sometimes positively and sometimes negatively.

Listen Intently

• Watch the interviewee. Do they fidget and constantly change position? If you are hiring for a high-energy position, she might be the right person. If what you are looking for is a calm, controlled employee, she may not be the best choice.

• Improve your listening skills with help from the International Listening Association at www.listen.org.

• Learn to interpret body language. Read about the signs in Interview Body Language: It’s Not What You Said at MBA Jungle, www.mbajungle.com.

Judging Attitudes and Appearances

• Did they show up on time? Someone who is late for an interview has a good chance of being late for work. Of course, if they have a flat tire, be reasonable. How they handle being late is equally important.

• How are they dressed? You would not expect a prospective server to show up in a suit, unless you have a very high-class establishment. But a sloppy interviewee will surely be a sloppy employee. Are fingernails clean, hair washed, and clothes neat?

• Do they look around and show interest during your tour? If they have no interest in what may be their future place of employment, how much interest will they have if you hire them?

• Does the interviewee respond in a friendly manner when introduced to other employees? A friendly attitude and outgoing personality is vital for good customer service.

HIRING THE BEST PERSON FOR THE JOB

There is no exact science for making your final choice. You can improve your chances for success with good hiring practices. I have gathered some informative sources for tools and guidance to help you choose your next employee.

• Research. Read an excellent article on selecting the right employee at My Web (The Site for Small Business Owners) — Choosing Between Two Equally Qualified Candidates at www.mywebca.com/infolibrary/staffing/staffing7.htm.

• Conduct multiple interviews if necessary. First impressions can be deceiving and second interviews can reveal new facts. Use the second interview to bring in other interviewers and to discuss wages and benefits.

• Check references thoroughly. Failing to check references can be a costly mistake. You could be hiring a poor worker or someone with excessive absences. You could be risking a negligent hiring lawsuit where an employer can be held liable when they knew, or should have known, that an employee presented a foreseeable risk of harming others. Monster.com offers excellent advice to employers on reference checking at http://hr.monster.com/archives/hiringprocess/reference. Career Know-How, www.careerknowhow.com/resumes/fibs.htm, reports these job-seeker statistics:

o 51 percent falsify length of past employment and salary.

o 45 percent falsify criminal records (you can only ask about convictions, not arrests).

o 33 percent lie about driving records.

• Non-work-related references. Entry-level workers, with little or no prior work experience, should provide teachers, pastors, Scoutmasters, or other responsible adults as references.

• Hire a reference-checking company. Companies like HRPlus, www.hrplus.com; Employment Screening Services, www.employscreen.com; and Info Link Screening, www.infolinkscreening.com can get the full scoop and save you hours of phone calls.

• Do not tell all the candidates of your decision until your new employee starts. You may find that the chosen candidate changes her mind at the last moment.

SAVING PAYROLL DOLLARS

Savvy entrepreneurs never overlook allowable tax deductions, credits, government programs, business subsidies, or other money-saving opportunities. Some will be easy to take advantage of, while others will require diligence and extensive paperwork. The direct and indirect savings can go a long way to balancing your budget. Below you will find some valuable resources and ideas on trimming payroll costs. The information provided here is for your educational benefit. Please consult with your accountant, tax advisor, or attorney for current information and applicability to your situation.

• Pay employees with benefits. The more cash wages you can move into exempt and pre-tax categories, the less payroll taxes you and your employees will pay.

• Benefits fall into three categories: taxable, exempt, and pre-tax. Taxable benefits are subject to federal income tax withholding, Social Security, Medicare, or federal unemployment tax. They are reported on Form W-2. Exempt benefits are excluded from employee withholdings and employer contributions (with some exceptions) and are not reported. Pre-tax benefits feature flexible benefit plans that allow employees to design and pay for customized benefit packages with nontaxable employer dollars. They can cover accident and health costs, adoptions, dependent care, and life insurance.

• Create charts and employee guides to demonstrate how employers can “earn” more by saving tax dollars. Use these tools during the hiring process and employee orientations to help employees understand the advantages of receiving benefits over a larger paycheck.

• Properly calculate overtime pay for tipped workers. The Department of Labor website at www.dol.gov offers up-to-date information on current and pending overtime laws.

• Keep track of time. Good recordkeeping can trim payroll costs up to 7 percent. Check out manual, electronic, and computer-based time clocks with thumbprint ID sign-in at Time Centre, www.timecentre.net; and Time Clock Plus, www.timeclockplus.com.

OFFER THE RIGHT BENEFITS PACKAGE

Employee compensation packages are comprised of taxable wages (employee and employer paid) and taxable (employee) and non-taxable benefits. Here are some tips on benefits:

• Implement pre-tax benefit plans that save everyone money. A variety of benefits can be packaged where deductions would be pre-tax (prior to withholding calculations). Retirement, commuting, dependent care, and medical savings plans can all be paid with pre-tax dollars, such as section 125 Plans (“cafeteria” or “flex” plans).

• Explore benefits that cost almost nothing, but save you payroll dollars. Although many employers contribute to benefit plans, you can set up 100 percent employee-paid plans where your only costs would be to administer the plan and file IRS Form 5500. See BenFlex, Inc. at www.beneflexinc.com; My Cafeteria Plan at www.mycafeteriaplan.com; U.S. Health Plans at www.ushealthplans.com/medsavings.shtml; or learn more about 401(k) plans at www.401khelpcenter.com.

• Hire a benefit consultant. Companies like Broad Reach Benefits, Inc., www.brb1144.com/index.html, can guide you through establishing voluntary benefit programs and expand your benefit choices.

• Offer tax-exempt employee benefits. Explore with your tax advisor the benefits of offering these fringe benefits (wage deduction figures given are per employee per year):

o Achievement awards — personal property award up to $1,600 tax free.

o Adoption assistance — $10,000.

o Athletic facilities — value to employees.

o Dependent care assistance — up to $5,000.

o Education assistance — up to $5,250.

o Employee discounts — formula based on cost.

o Group-term life insurance — contact the IRS for current regulations.

o Meals — up to 100 percent of costs. Read about de minimus (little value) meals and workplace meals at www.5500accountant.com/meals-andlodging.htm and in IRS Publication 15-B.

TAX DEDUCTIONS AND CREDITS

I have outlined some potential wage and tip tax-saving ideas that you should discuss with your business advisors.

• Let an expert guide you. Your first step to savings should be to hire a qualified CPA. Many payroll-related activities require strict compliance with court rulings and IRS opinions and state and federal laws change frequently.

• Keep current on tip tax laws and court rulings. The restaurant industry continues to tackle the issue of tips and their tax obligations. Recent rulings have been in the IRS’s favor, but the discussion continues. Your local restaurant association can keep you and your accountant up to date. For current information and tip-reporting guides, visit the National Restaurant Association’s tip reporting page at www.restaurant.org/legal/tips; call the IRS at 800-TAXFORM.

• Protect yourself from an audit by agreeing to a standard tip calculation method. The IRS agrees not to audit your tip records if you agree to and comply with either the Tip Rate Determination Agreement (TRDA) or the Tip Reporting Alternative Commitment (TRAC). For more information, visit the Restaurant Report at www.restaurantreport.com/departments/ac_tiptactics.html.

• Take a 45(B) credit. The IRS allows businesses to take a credit against Social Security and Medicare (FICA) taxes paid on tips. To learn more, read the National Restaurant Association’s article at www.restaurant.org/legal/law_fica.cfm.

• Claim wage credits and deductions for employees’ meals. Meals provided in your restaurant for your convenience are not taxable. If your staff must remain on-site during their shift, meals provided are not taxable as wages. Meals used as rewards or outside of the employees’ scheduled work period are typically taxable. Meals provided at no charge may be credited against your employer’s minimum wage obligation. Some states set specific values for meal credits while the Fair Labor Standards Act (FLSA) allows the “reasonable” cost as an offset.

• Claim wage credits and pay exemptions for extended breaks. Typically, rest periods longer than 30 minutes, where no work duties are required, are not compensable. Check the following Department of Labor links for information on your state’s rules. For state laws on rest periods, see www.dol.gov/esa/programs/whd/state/rest.htm. For state laws on meal periods, see www.dol.gov/esa/programs/whd/state/meal.htm.

TAKE ADVANTAGE OF BENEFIT DISCOUNTS AND SUBSIDIES

• Join trade, business, or community organizations to lower benefit costs. Many offer reduced pricing on insurance, wellness programs, incentive plans, training, and retirement packages. Contact your state’s restaurant association and the National Restaurant Association at www.restaurant.org/join/services.cfm to learn more about industry offerings. Small business organizations can provide reduced rates for members. Try one of these to reduce your employee benefit costs: National Business Association at www.nationalbusiness.org or Small Business Benefit Association at www.sbba.com.

• Offer discounts for lifestyle and health needs like prescriptions, vision, dental, and cosmetic surgery.

• Create a carpool and ride-share program. Employers’ subsidies promote the reduction of urban traffic and energy usage. Information is available through federal, state, and local government energy and transportation departments.

• Barter with local merchants for pizza, movie passes, theater tickets, and other items suitable for employee rewards. Consult your tax advisor regarding your tax obligation and recordkeeping requirement.

• Contact your bank for employee-banking services including free checking, discounted loan services, and automatic payroll deposit.

• Enroll your business with a credit union. Credit unions offer employees excellent discounted financial services. Convenient on-site enrollments are available.

• Set up a U.S. Savings bond program. Funds are deducted from each paycheck, held until the purchase price is accumulated, and then the employee’s bond is ordered. For information, visit www.savingsbonds.gov.

• Offer no-cost life-skills classes. Seek out bankers and investment counselors to provide free financial advice on savings, borrowing, investing, retiring, and owning a home. Nonprofit and government organizations are good sources for free classes on topics like parenting, choosing a child care provider, and health concerns.

GOVERNMENT EMPLOYMENT PROGRAMS

Government agencies frequently take active roles to help high-risk and disadvantaged people become employed by offering payroll subsidies, tax breaks, and training programs. There are also financial-support programs based on where your business is located and the type of benefits you offer.

• Search out work programs, subsidies, and tax breaks by contacting your local chamber of commerce, small business associations, State Departments of Welfare, Commerce, and Employment, and your accountant. Ask your state employment division about “empowerment or enterprise zone” tax credits.

• Read IRS Publication 954 “Tax Incentives for Empowerment Zones and Other Distressed Communities” to learn about federal wage (salary plus company-paid health insurance costs) credits.

o Distressed communities (up to $3,000 per employee).

o Native American employment credits (up to 20 percent credit).

o Work opportunity credit for high unemployment groups; for example, felons, veterans, and food stamp recipients (up to $2,400 per employee/$1,200 summer youth employee).

o Welfare-to-Work (up to $8,500 per employee).

• Help the disadvantaged and your business. Training programs and tax credits and deductions are available. CCH Inc. (www.cch.com) has an informative article on the four federal tax credits listed above at taxguide.completetax.com/text/Q16_3214.asp. Contact the U.S. Work Force at www.usworkforce.org, 877-US2-JOBS.

DISABLED WORKER PROGRAMS

The federal government defines “disability” as a physical or mental impairment that substantially limits one or more of the major life activities; walking, seeing, speaking, or hearing. Under the Americans with Disabilities Act (ADA), employers are to make “reasonable accommodation” to facilities, job duties, work schedule, equipment, and other accommodations. A “qualified individual with a disability” means an individual with a disability who, with or without reasonable accommodation, can perform the essential functions of the employment position that such individual holds or desires.

Learn more about the financial benefits of hiring the disabled under the Ticket to Work and Work Incentive Improvement Act (TWWIIA) at the Department of Labor, www.dol.gov/odep/pubs/ek00/ticket.htm.

Improve your accommodations for disabled workers and accessibility for disabled employees and/or customers. The Disabled Access Credit (IRS Code Section 44) grants small businesses a tax credit (a 50 percent credit up to $5,000 annually).

OTHER HELPFUL TAX-SAVERS

• Share credit card fee costs. Before disbursing tips added to credit card charges, you may legitimately deduct the credit card company’s processing fee on the tip portion. Be certain to verify if it is allowed in your state.

• Hire family members to eliminate some tax obligations. Many restaurants are unincorporated family businesses where everyone capable of working does.

• If your children or spouse are not on the payroll and they can legitimately handle some type of work, you may be eligible for a variety of tax breaks. Hire your under-18 child and do not pay Social Security or federal unemployment taxes. Speak with your tax consultant for specifics. Read the Motley Fool article at www.fool.com/taxes/2002/taxes020628.htm.

• Explore other tax deductions and credits related to benefits. Many are tax-free to employees and all are legitimate business deductions. Below are a few tax-savers:

o Up to 50 percent of employee pension plan set-up costs.

o Up to $100 a month per employee for public transportation discounts or passes.

o Up to $180 per month per employee for parking.

o Clothing (uniforms, aprons, hats) imprinted with the name of your business can be considered an advertising expense.

HIDDEN PAYROLL EXPENSE SAVINGS

You will also have other costs associated with payroll. It takes time and money to maintain time slips, calculate taxes, write payroll checks, keep payroll records, administer benefit programs, and make tax deposits. To help you with the paperwork hassles and reduce these costs, I have compiled some practical ideas and useful resources.

• Hire a local payroll service firm. Even if you handle your own bookkeeping, outsourcing payroll can be a wise decision. You will not have to worry about the right tax table or when to deposit withholdings. One advantage of hiring a professional is that she frequently assumes all liability for filing errors and pays for all penalties or interest on late or inaccurate filings. Be certain to ask about liability issues.

• Try online payroll services. Search the Internet under the keyword “payroll service” for banks, national service firms, local consultants, and Web-based solutions. Ask about liability issues. See Wells Fargo Bank at www.wellsfargo.com; Paychex at www.paychex.com; or Automatic Data Processing at www.adp.com.

• Buy payroll software and do it yourself. Popular accounting packages have add-on modules and stand-alone software programs. Remember, you assume all liability for errors. See QuickBooks at www.quickbooks.com/services/payroll; Peachtree at www.peachtree.com/epeachtree/payroll.cfm; Pensoft (restaurant versions) at www.pensoft.com; or Restaurant Technology Inc. at www.internetrti.com/productTours.

• Use human resources software, online services, and downloadable human resources forms. See Trak It Solutions (HR software) at www.trak-it.com/welcome.html.

• Find someone to do the human resources support and paperwork. Human resource consultants and personnel service providers can handle every aspect from advertising to interviewing to overseeing your benefit plans. Eliminate writing payroll checks. Direct deposit paychecks into employee bank accounts. Some banks even offer free checking for employees needing to open a bank account associated with your direct deposit participation.

• Consider lengthening your payroll periods. You can reduce your payroll accounting costs (check writing, recordkeeping) by up to 70 percent by switching from weekly to monthly. If employees find the monthly cycle difficult, try offering a less costly procedure like a scheduled draw mid-month. To verify your state’s pay period requirements, see the Department of Labor’s chart at www.dol.gov/esa/programs/whd/state/payday.htm.

OTHER PAYROLLL RESOURCES

• Tax Tip Calculator at www.paycheckcity.com/Tipcalc/tipcalculator.asp.

• Time and attendance software listings at www.hr-software.net/pages/211.htm.

• Days off calculator at www.daysoffcalculator.com/web.htm.

• Pay raise calculator at www.payraisecalculator.com.

SAVE MONEY IN EMPLOYEE TRAINING

TEACHING SUCCESS

Accepting the responsibility for training is expensive, so your first choice should be to hire people with experience. Paying more than the prevailing wage and offering a comprehensive benefits package may cost you less in the long run. If you are lucky enough to have an ample, well-educated workforce in your community, your employee training may only consist of orienting new hires to your own procedures and establishing personal goals and employer expectations. However, if trained workers are not readily available, your only option may be to accept bringing their skills up to your standards.

INVEST IN TRAINING

Invest time and money in training to improve productivity, increase sales, and enhance quality. Allocate time to properly train employees. Their increased productivity will pay for your time and effort. A good job description = better training = more productivity.

Reasons for training:

• Unprepared employees are unhappy employees, resulting in high turnover.

• Unskilled or untrained employees will cost you more in low productivity, poor service, waste, and inefficiency.

• Lack of training creates employees with poor attitudes and bad work habits.

TRAIN THE TRAINER

If you did not hire someone for their training abilities, do not expect them to be a natural at it. Simply handing over a new employee to a coworker may work, but most often it does not. Your first step is to train the trainer.

• Teach employees to be trainers with help from Workforce.com at www.workforce.com/section/11/article/23/24/25.html and www.atlantic-pub.com.

• Get food safety training tips and techniques from Food Safety Training and Education Alliance at www.fstea.org/resources/training.html.

• Find a “Train the Trainer” seminar. Restaurant management-specific classes and seminars are available through your state’s restaurant association.

YOUR TRAINING NEEDS

You pay for training, whether it is done right or wrong. Protect your investment by developing a program that meets the needs of your organization and brings you the greatest benefits.

• Look at your current employees. What natural talents do they have that need to be enhanced? What would they like to learn? Talk to them and review their current skills against their assigned job description. Which tasks are still as difficult for them as when they started their job? These tasks should move up higher on your training schedule.

• Start cross-training. Cross-training can be very valuable, especially to a smaller operation. Cross-trained employees can fill in when others are absent and jobs can be combined during slow economic times. Cross-training can also be used to prevent boredom for employees with routine jobs. Rotating positions can make the work more interesting.

SPECIFIC TRAINING AREAS

Below are some training areas from which your employees and restaurant might benefit:

• Computer. Personal computer hardware, computerized systems (sound and lighting systems), computerized equipment.

• Software. Point-of-sale systems, time management, scheduling, inventory control, reservation system.

• Language. English for immigrants or foreign languages to converse with non-English-speaking employees or customers.

• Safety. Food and alcohol, personal and workplace safety (accident prevention, injury, ergonomics), theft, and robbery.

• Legal. Discriminatory practices, sexual harassment.

• Purchasing. Inventory control, waste management.

• Leadership. Problem solving, motivational.

• Personnel management. Problem employees, disciplinary, hiring, firing, sexual harassment, discrimination prevention, diversity.

• Time management. Productivity improvements through time management.

• Communication skills. Peer-to-peer, employee-to-employer, customer contact, phone skills, grammar, vocabulary.

• Customer service, sales techniques. How to increase ticket sizes without offending customers, handling difficult customers, building customer relationships.

• Etiquette. Personal, phone, cultural differences.

SETTING GOALS AND EXPECTATIONS

Goals and expectations are benchmarks for future employee reviews, bonus systems, and salary increases. Here are some practical suggestions and resources to help you explain your performance standards and set success goals.

• Read an eBook from Restaurant Trainers at www.restauranttrainers.com/html/goal_setting.html.

• Work with employees to discover their career path. Goal setting is more than just stating someone must cover seven tables and serve 24 customers an hour or they will not get a raise. It is also working together to develop a career. Many food-service careers are based on advancing through the ranks and on-the-job training. You have a personal opportunity to transform a trainee into a talented chef or valuable manager.

• Build in rewards and incentives. Explain how their success relates to the success of their department and your operation. Employees that understand they can make a difference accept increased responsibility and think more often about the common good. Personnel motivators call this “owning” the job.

• Establish schedules and deadlines whenever possible. It is human nature to delay actions until the very last minute. By setting deadlines and regular performance reviews, you will keep the goals active.

• Provide the tools and resources to reach goals. It can be as simple as a book to read or as comprehensive as an educational subsidy.

• Develop goals together and ask for a commitment. Give employees a copy of agreed upon goals and expectations. Place a signed copy in their employee file.

ESTABLISHING QUALITY, PRODUCTIVITY, AND PERFORMANCE STANDARDS

For proper training and performance evaluation, you need to establish standards for each job description. These become your training, proficiency, and motivational guidelines.

• Quality standards. Quality standards can be difficult to express. Do your best to illustrate these in words (job descriptions) and demonstrations (on-the-job training). Show servers what the dinner salad should look like rather than just telling them.

• Performance standards. The information you gather becomes the basis for your training, motivational, and employee review efforts. These standards also take into account human factors. Only machines can be expected to consistently perform each task exactly the same way in the same amount of time.

• Not a weapon. Work standards should not be used as a weapon or threat but as a guideline. You cannot reduce a warm smile or a melt-in-your-mouth dessert to a standard.

• Write them down. These standards should all be in writing. Besides including them in operational manuals and job descriptions, create and display wall charts. Use performance improvements between employees or shifts as the basis for a contest or bonus program.

Productivity Standards

In a single quick-service restaurant, 30 seconds can translate into thousands of dollars annually. To follow are some helpful tips on setting your restaurant’s productivity standards.

• Gather and analyze data. The better your data, the more accurate your standards will be. Take time and elicit your staff’s assistance in setting productivity standards.

• Conduct studies using actual real-world situations. Do time and motion studies. Review ergonomics and procedures for wasted time and motion.

• Gather data from other sources. A wide variety of data may already be available from credit card transaction time stamps, POS and inventory reports, equipment timers, usage calculators, and time clocks. Hosts/hostesses, servers, and cooks can gather information during their days.

• Do not rely on “industry standards.” Food prepared and served, facility size, layout, and equipment factors are different for every operation.

• Set realistic minimum activity levels. Remember that trainees and experienced staff cannot be expected to perform at the same level. Everyone must be able to meet the minimum activity level.

• Create tiered performance standards. Start with your minimum standard level and then add an “experienced” level and an “expert” level. These additional levels can be used in incentive programs.

• Use your most productive employees to set optimal standards. No employee can perform at 100 percent capacity for 100 percent of the time. Depending on the task and employee experience, acceptable levels will range from 75 percent and up.

TRAINING PLANS

Take your standards and job descriptions and develop a training plan for each job. Make it clear to a new employee that the skills, tasks, and behaviors must be mastered by the end of their training period.

• Analyze the job description. Identify the specific duties to be done and the skills needed to do them. List the duties from the most basic to the most specific.

• Use hands-on training and practice sessions. The quickest way for an employee to learn new tasks is through on-the-job demonstrations and immediate practice.

• Use role-playing for new employees who will be dealing with the public. Make sure they understand their duties and can perform them before you send them out to take care of actual customers. Test employees on a few critical issues. Some food-handling and safety facts should be tested to ensure that your employees understand and can comply with regulations. As the cliché goes: Ignorance is no excuse, but it can be quite costly.

STARTING OFF RIGHT

Employee retention starts from day one. Do not just expect them to show up on Monday morning and be ready for work. You must be ready to start them off right.

• Orientation is your first training session. Do not just hand them a W-4 to complete and a policy manual. Good employer/employee communication starts here.

• Tell them what you and your company stand for and how important their success is to you and your team. Tell them what you are willing to do to make them a better employee and the benefits of building a future with your company.

• Make it memorable. Do not drone on and on. You can even break the orientation into segments to be held over several days.

• Inject some humor. Try this book for ideas: The Big Book of Humorous Training Games: Dozens of Games for Popular Training Topics, From Customer Service to Time Management by Doni Tamblyn and Sharyn Weiss.

• Avoid technical words or jargon. New employees are less likely to ask questions, so your point may be lost unless you keep it simple.

• Demonstrate whenever possible. Miscommunication can reduce productivity or create unsafe situations.

There are a number of questions that most new employees have. Here are a few that you should be sure to answer:

• How do I get paid? Make certain people understand how to complete and turn in time cards. Explain pay cycles, draws, and benefit deductions.

• To whom do I report? Clearly identify direct and indirect supervisors and explain the relationship.

• Whom do I ask? Tell new hires about each person’s expertise and duties through personal introductions.

• How do I work it? Allow ample time for equipment training. Lack of training directly impacts employee and equipment productivity. Do not overlook common items such as phone systems and time clocks. Create cheat sheets and reminders for quick reference. Concentrate on ergonomics and safety training.

MEETINGS

A quick meeting before the shift gives you an opportunity to teach and listen. You can also use this time to recognize individual accomplishments and share personal updates, improve communications and reduce gossip, give pep talks and announce contests, and make everyone feel included. Feeling “in on things” is very important to employees.

• Do not try to solve the world’s problems. Do listen to what your people have to say. You do not have to come up with a solution on the spot.

• Make problem solving a team project. Implement solutions to previously voiced problems during these meetings. When your employees know that you are listening and trying to make their job better, you may be amazed at the solutions they can suggest.

• Create an atmosphere of trust. If you ask for input but your people have nothing to say, then you do not have their trust. To be effective, listen to their complaints and suggestions with an open mind and to come up with a fair and reasonable solution.

CULINARY AND HOSPITALITY PROGRAMS

Building a relationship with one of the 1,700 culinary and hospitality trade schools nationwide can translate into a “first pick” from the most talented students. To follow are several resources for locating schools and programs dedicated to the culinary arts.

• Trade schools. National Restaurant Association at www.restaurant.org/careers/schools.cfm; Star Chefs at www.starchefs.com/helpwanted.html; Culinary Education at www.culinaryed.com; Cooking Culinary Arts Schools at www.cooking-culinary-arts-schools.com; CookingSchools.com at www.cookingschools.com; and Culinary Training at www.culinary-training.com.

• Sponsor a student. A CookingSchools.com article aimed at potential culinary students has some great ideas for potential employers. Go to www.cookingschools.com/articles/scholarships to learn more.

• Learn about apprenticeship programs from the American Culinary Federation at www.acfchefs.org or Hospitality Campus.com’s online training at www.culinaryconnect.com.

IN-HOUSE TRAINING PROGRAMS

Below are resources and tools for enhancing your in-house training programs.

• The Encyclopedia of Restaurant Training, The Complete Wait Staff Training Course—Video and The Waiter & Waitress and Wait Staff Training Handbook: A Complete Guide to the Proper Steps in Service for Food & Beverage Employees. These are all available from Atlantic Publishing, www.atlantic-pub.com, along with other videos and training programs.

• The Waiting Game: The Ultimate Guide to Waiting Tables by Mike Kirkham.

• The Restaurant Training Program: An Employee Training Guide for Managers by Karen Eich Drummond and Karen A. Drummond.

• E-Learning and CD-ROM food service courses from Tap Series, www.tapseries.com.

ADULT EDUCATION

Adult illiteracy costs U.S. businesses an estimated $225 billion annually in lost productivity. Workplace literacy is not just an issue for non-English-speaking workers; American born-and-raised adults also lack the training to read written instructions, do basic math calculations, or complete a job application properly. Many restaurateurs have discovered the benefit of supporting, sponsoring, and offering adult education classes: greater productivity, fewer errors, and increased workplace safety. To support employer efforts, a variety of private and public funding, tax benefits, and wage subsidies are available.

• Literacy. Visit the National Institute for Literacy organization at www.nifl.gov. Watch an interactive presentation on adult literacy in the restaurant industry by the state of North Carolina at www.ncrtec.org/pd/cw/rest/start.htm. Develop a workplace literacy program. For information, visit the Adult Literacy Organization at www.adultliteracy.org/wpl.html.

• The general educational development (GED) credential was created as a solution for adults who have not graduated from high school.

• English as a Second Language. The goal of ESL instruction is English language (speaking, writing, reading, and comprehension) and literacy proficiency. Unlike general adult educational programs, ESL programs may be offered to highly educated learners who simply lack English proficiency. Read Communicating in a Melting Pot from Restaurants USA at www.restaurant.org/rusa/magarticle.cfm?articleid=106. Learn more from the National Association for Bilingual Education (NABE) at www.nabe.org or call 202-898-1829.

• Life-skills training. Life skills represent the knowledge and aptitudes necessary for a person to function independently and to keep a job. Workers lacking economic and educational opportunities may not have developed these basic skills and may struggle to meet employer expectations. Helping your workers develop life skills can be a wise investment. To learn more, Work Shops, Inc. has a manual online at www.workshopsinc.com/manual/Toc.html.

SCHEDULING YOUR STAFF

There are eight basic steps in the scheduling process:

1. Developing work production standards. Calculate the amount of work (covers, meals, place settings) that an individual employee with a specific job (server, cook, dishwasher) is expected to accomplish in a set time period.

2. Plotting patterns of activity in various units of the operation. Food service facilities usually have different patterns of activity during the day that requires different levels of scheduling.

3. Forecasting levels of activity. Shift, daily, weekly, and monthly customer/sales cycles should be factored in. These can be broken down into quarter, half, and hourly segments within each day.

4. Determining the number of workers and/or hours needed. Divide the work production standards into the anticipated number of covers (customers) and the number of personnel required can be calculated.

5. Considering employee time and assignment requests. Job assignments; skills, abilities and experience; scheduled absences; desired rotation; wage rates; and legal considerations such as hours for minors and overtime are all important considerations.

6. Approval by management after the schedule is written. Evaluate by criteria such as labor cost per hour, customers served per hour, or any other appropriate criteria.

7. Distributing approved schedule to employees. Employee handouts, break room and office postings, website postings, e-mail broadcast, and “call-in” systems are all ways to ensure staff members have ample notification of shift assignments.

8. Recapping and reviewing the historical schedules by management to discover problems, explore solutions, and improve processes.

SCHEDULING TRUISMS

Your goal is to complete all necessary work using the least number of labor hours possible while maintaining an outstanding level of service. Establish a baseline for a minimum acceptable service level. Then analyze how each additional worker impacts service quality and productivity. Employees appreciate getting more help but become irritated when they “lose” help.

Absenteeism will wreak havoc on your fine-tuned schedule on a regular basis. Controlling unplanned absences is critical to maintaining adequate productivity and service levels. See the section on “Absenteeism” for more information.

Good forecasting requires good data. Historical and current data must be accurately gathered and easily assessable. Outside factors are important forecasting issues, such as seasonal demands, weather conditions, special events, and competitive issues.

You must understand your team’s capabilities and capacities. Consider individual skills and abilities to balance scheduling. Some servers cope with noisy children better, so schedule them during family times. Family needs create unplanned absences and distract workers. Whenever possible, you should consider these during scheduling.

Overworking (physically and emotionally) staff members can significantly lower productivity, increase absenteeism, and escalate turnover rates. Frazzled employees are potential customer-service nightmares. Inattentive service, inaccurate orders, spills, and angry encounters lower your service quality and chase away customers. Tired employees can cut corners — increasing food safety problems, food waste, equipment and dishware damage, accidents, and injuries.

Overstaffing does not just inflate your payroll; it can decrease your overall productivity. Congested serving and kitchen areas make everyone’s job more difficult and lowers service quality.

You must balance quality and quantity. A fast cook who makes mistakes and turns out sloppy meals is not up to your quality standards. A slow cook who turns out perfect meals is not up to the quantity standards.

SCHEDULE TYPES AND PATTERNS

There are different types of schedules that can be used in a food service operation.

• Scheduling by production requirements for individual items. Determine what has to be produced for the meal, period, or day. You may include items that will be produced for future meals.

• Scheduling by station production. Items from the production schedule are assigned to a workstation (bakery, salads). Smaller operations may combine a production schedule and a station work guide.

• Scheduling by staff coverage provides coverage for the various units within the operation. Production schedules should be coordinated with individual scheduling. Dining room scheduling is based on the forecasted number of patrons divided by the work production standards of the dining room personnel.

There are three common scheduling patterns:

1. Block or stacked schedule. Everyone on a shift starts and stops working at the same time. It is easier to check that everyone is present and on time and share common information.

2. Staggered arrivals and departures. Employee schedules correspond to the work pattern and customer flow. It is more efficient than block scheduling, as the number of employees gradually increases during the peak volume periods and decreases towards the end of the day.

3. Spanner shifts. Provides overlapping coverage for a smooth transition between shift changes. Overlap times range from 30 to 60 minutes, depending upon the job category and duties. It eliminates staff working past scheduled departure times to “finish up.”

OTHER POSSIBLE SCHEDULING METHODS

Forecasting can be difficult, especially for newer establishments without any historical data. Scheduling inaccuracies can inflate your labor costs or result in substandard service. You will find that unplanned events can directly impact your staffing requirements. There are other scheduling procedures to help you through unpredictable times. Below I will discuss six ways you might consider. Although federal wage and hour laws do not address these issues, you should be aware of union contracts, local labor practices, corporate policies, and state laws that may govern your use of flexible scheduling practices. Meal and rest periods may also be mandated by your state even if workers are on the clock for less than eight hours.

• On-call scheduling. Hourly employees remain at home until you call them into work. Quick response can be critical so employees can be given pagers or cell phones so they are not “trapped” at home. Employees can rotate being on-call to give them additional free time without significantly affecting their paycheck. On-call periods would be scheduled like any other work duty. Trainees and new hires can be used for on-call coverage during probationary periods. Minimum hours may be mandated by union contracts and other labor practices.

• Send-home-early scheduling. The reverse of on-call scheduling, employees are sent home when work slows. With good forecasting and intelligent scheduling, it would typically be used for unusual circumstances, such as bad weather. Employees can rotate, draw straws, or volunteer to go home early. Trainees and new hires can be chosen.

• Part-timers. Schedule part-timers for additional coverage during peak periods and seasonal influxes. Post a roster of workers interested in part-time or temporary work, a good choice for people seeking part-time work with flexibility.

• Split shifts. Similar to part-timers but where employees would work multiple, non-consecutive mini-shifts totaling up to 40 hours a week. Employees clock out between scheduled work periods. Workers would cover specific meal periods or required prep and clean-up times.

• On-break schedules. When it is not practical to send someone home, you can put them on an extended break. A 30-minute off-the-clock break and employer-provided meal means you can deduct the cost of the meal against the minimum wage requirement and save half an hour of pay.

• Short-term overtime. Overtime is costly but sometimes necessary when unforeseen emergencies arise and short-term coverage is required. Beware of burn-out and stress when employees are working extra hours to help out.

THE NEGATIVE IMPACTS OF UNDERSTAFFING

Unskilled managers can be too zealous in keeping labor costs low. A shortage of workers or relying primarily on inexperienced, lower-paid workers will initially reduce your costs. However, the long-term impact on service, morale, and productivity can mean a slow and painful death for your business. Below are some useful resources and ideas on how to measure whether your staffing levels are creating problems.

• Tour the dining room throughout the meal and ask your customers. Conduct customer service surveys. For information on surveys, visit The Business Research Lab at www.busreslab.com/consult/restcslg.htm or Mercantile Systems and Surveys at www.mercsurveys.com.

• Hire a “mystery shopper.” Check the Mystery Shopping Providers Association at www.mysteryshop.org or call 972-406-1104 for a local consultant.

• Employees suffer. You risk losing your most productive employees, as they will probably be the ones working longer hours. Overworked employees can quickly become unhappy and unproductive employees. Some employees will not complain; they will just lose their incentive to work hard and leave. Others will develop a disruptive attitude before leaving.

• Cumulative fatigue can become a financial burden. A McDonald’s restaurant was held responsible for $400,000 in personal injury damages after an employee, who had worked three consecutive shifts in 24 hours, fell asleep at the wheel causing a serious collision.

• Business declines. How long customers will wait varies from establishment to establishment. Customer expectations during a workday lunch are significantly different than at a leisurely resort. In our fast-food nation, waiting is a major issue for diners. Customers will only put up with slow service for so long.

THE NEGATIVE IMPACT OF OVERSTAFFING

Having too many people on hand can affect your bottom line in more ways than just wasting your payroll budget.

• Poor work habits and attitudes will rise as employees slow down. Employees will resist an increase in their workload after being overstaffed for a while. They will adapt their performance levels to a lower productivity standard. They will even feel overworked and find it difficult to “speed up.”

• Workers with idle time become distractions. Water cooler chit-chat begins to interfere with customer needs. The atmosphere becomes too relaxed and service declines due to the resulting apathy.

• Physical and mental fatigue becomes an issue because of boredom and time-wasting habits. Morale drops because management must eventually reduce their labor costs. But before they do, tips will suffer, which also creates motivational problems.

COMPUTERIZED SCHEDULING

Restaurants of all sizes can successfully implement computerized employee-scheduling systems and software. Employee scheduling can be handled by a website, an uncomplicated Windows program, or linked directly to “time clocks.” Below are a few sources for computerized scheduling:

• Optimal Solutions at www.optimal-solutions.com. They offer online solutions that run through your browser and desktop programs.

• Schedule for restaurants at www.aschedule.com. The program can automatically calculate your labor costs per cover and has an “Overtime Alert.” Two versions are available for small or multi-store operations.

• Asgard Systems Inc. at www.asgardsystems.com. The “Time Tracker” system also keeps track of vacation time, sick time, etc. It can review past activity and prepare payroll data.

• Restaurant Technology, Inc. at www.internetrti.com. Management, scheduling, and accounting software for the food service industry.

• Staff Schedule at www.staffscheduling.com is a free Web-based scheduling program and can be accessed by management and employees from any Web-accessible computer to set and check work schedules.

• Open Wave at www.open-wave.com offers various Web- and PC-based programs.

SCHEDULING TIPS AND HINTS

Here are some final useful scheduling tips, hints, and resources:

• Study your volume. Schedule labor to match volume needs.

• Study the level of activity breakdowns by area.

• Different work units have different patterns of activity throughout the day. Normally, activity is highest in the kitchen before it is in the serving areas. The dishwashing unit activity peaks 15 to 45 minutes after the serving area peaks.

• Schedule according to your customer flow.

• Plan for shift changes to minimize service disruptions. Take into consideration the layout of your establishment and the total duties of each position.

• Employees should be given enough flexibility to ensure that transitions are handled smoothly and tasks completed to the customers’ satisfaction. But set some limits to keep overtime in check.

THE PRODUCTIVE WORKPLACE

PRODUCTIVITY

To increase profits, you can increase sales or decrease costs. Your serving staff should all be trained to “sell” more — larger tickets lower your cost per cover. However, an extra $150 per shift does not increase profits by $150. After costs and taxes, you might be lucky to net $20. But saving $150 by operating more efficiently increases your bottom line by $150. Improved productivity can be defined as working smarter, not harder, to achieve more. To increase your staff’s productivity, changes can be:

• Simple. Buying extra trash cans.

• Complex. Commissioning work-motion studies.

• Free. Overcoming poor work habits.

• Costly. Remodeling the entire kitchen.

• Physical. Building a facility with no stairs.

• Psychological. Creating an “ownership” attitude.

PRODUCTIVITY IS ALSO A QUALITY GOAL

If the quality of your food and customer service declines, you have hurt your business. The most important factor in improving productivity is smart management. Do not compromise your quality standards. A change that noticeably lowers your quality will also noticeably lower your sales. Beware of changes done for the sake of “efficiency” that cause employee morale to decline.

Invest in your business’s productivity. Invest in training. Well-trained employees are happier, more productive, less prone to job stress, and less likely to be lured away by your competition. Or invest in equipment that pays for itself in labor-savings or in a worker-friendly building. Make it easier for your staff to do their jobs with proper ergonomics and well-designed rooms.

PRODUCTIVE PEOPLE

There are three basic ways to make employees more “cost effective.” First, get more work from the employees you have in the same number of hours. Second, get the same amount of work from fewer employees in the same number of hours. Third, get the same amount of work from fewer employees in fewer hours. Here are some tips on productive people:

• Being profitable is important to everyone. Getting everyone to share this never-ending goal is your first step in directing people to be more efficient. Employees that see a direct correlation between their work performance, the customers’ satisfaction, and your restaurant’s success are going to work harder.

• Do not waste a minute. Have employee time cards initialed upon arrival and departure by the manager on duty. You will know exactly when the employees arrive and start to work and your manager can check the employees’ appearance. If there are special instructions to be given to an employee, the manager does not have to go looking for anyone. At the end of each shift, the manager has an opportunity to thank the employee and privately address problems.

• The quickest way to create unhappy employees is to “forget” to handle suggestions and complaints. When asking for input, remember that it always requires some “output” by management. That does not mean you have to implement every suggestion or “solve” every complaint — it means that you take them seriously and act accordingly. Your actions tell your employees that their ideas and opinions have value.

• Stimulate, but do not stifle. Some employees are “naturally” productive. Their personal work ethic and positive attitude make them self-motivated and productive. Sometimes it can seem as if these are “problem” employees, as they tend to be more independent and headstrong. Your job is to harness and direct their energies without stifling them.

• Make it easier. Watch your employees at work. Silent observation can reveal inefficiencies in your system. Mentally break down their activities into small segments to see where you can add labor saving equipment, rearrange the work center, or save steps between work areas.

• Unsupervised employees will not do their job quickly and accurately unless they clearly know what their job is.

• Reduce employee stress and fatigue. Working people harder will increase productivity but only to a point. Employee burnout is 60 percent emotional and 40 percent physical.

• Build in checks and balances to see that shortcuts are not being taken that compromise your performance, quality, or safety standards. Assign team leaders to supervise implementation of productivity changes.

• Create a follow-up plan to verify that employees have not fallen back into old habits. Do not let turnover degrade good habits and efficient procedures.

STREAMLINED TASKS

Manufacturing productivity experts can spend hours analyzing what is the fastest and most efficient method for inserting Part A into Part B. You should be looking at your daily operations from the same point of view: How can you do it better? To follow are some suggestions to get you started in reviewing tasks and establishing better procedures and methods.

• There is not just one right way to do something.

• It is easier to replace a bad habit with a good one than to try to break it.

• Target specific activities for time and performance studies one at a time.

• Do not overload yourself and your staff by trying to improve everything at once.

• Tackle the obvious first. A few positive changes can stimulate your team to work together to find other areas for improvement.

• Analyze production standards on a daily basis. It takes some time and analysis to determine standards, but it is worth the effort.

• Advance planning is the key to controlling costs. Plan production activities in advance. Group together like activities in specific time frames to minimize cleanup.

• Review your menu choices. Are you selling enough of a specific item to warrant the labor required to prep, prepare, and serve it? Will altering a recipe allow you to do more advance prep? Does purchasing fully prepped ingredients or pre-processed entrées cost less than handling it in-house?

• Provide less service. If your restaurant style lends itself to self-serve salad bars, buffets, and self-bussing, you can cut your staffing needs and your labor costs. When reviewing the cost-benefit analysis, be certain to consider the cost of equipment, shrinkage/waste, and customer perception. Remember, many people eat out because they are waited on.

• Make use of new, more efficient equipment. Conveyer-style dishwashers can eliminate a part-time dishwasher.

WORK SMARTER, NOT HARDER

• Read a book. Atlantic Publishing offers several books for restaurant professionals, which are available at www.atlantic-pub.com.

• Hire an efficiency consultant like Peggy Duncan, www.duncanresource.com.

• Learn how Pal’s did it. This Tennessee fast-food chain, www.palsweb.com, won the prestigious 2001 Malcolm Baldridge Quality Award, www.nist.gov/public_affairs/pals.htm.

• Conduct memorable meetings. Routine meetings become routine. Keep employees on their toes with humor, silly costumes, magicians, humorous training videos, and other attention-getters. To learn how to have fun meetings, see EffectiveMeetings.com at www.effectivemeetings.com/meetingplanning/index.asp or Patricia Fripp at www.fripp.com/art.makefun1.html. You can also read Successful Meetings: How to Plan, Prepare, and Execute Top-Notch Business Meetings from Atlantic Publishing at www.atlantic-pub.com (Item # SMS-01, $24.95).

• Work ahead. The more activities you can combine before serving times, the more prep labor you will save.

OTHER WAYS TO SAVE LABOR COSTS

• Use disposables. If the ecological concerns of disposables are not a concern, disposables can be a labor-saver when it comes to those nasty cleanups.

• Label and color code. Create a color-code system to quickly identify items at a glance. Colored labels can help people return items to their proper storage area or let them know if it needs to be refrigerated. See www.daymarksafety.com.

• Use napkin rings. Build wrapped napkin/silverware sets ahead of time to save table-setting time. You will reduce storage handling and rewashing. Add your restaurant logo for a personal touch. Bands are available from ColorKraft at www.colorkraft.com, 866-382-4730.

• Use Griptite™ serving trays. Available from local suppliers, these metal trays have a non-slip surface for easier carrying. The 31-inch oval tray can hold eight dinners!

• Eliminate clutter. Clutter is defined as anything that has no immediate use or value. Everything else should be tossed or properly stored. Hire an organizational expert to review your storage systems and suggest ways to reduce handling costs.

• Eliminate pot and pan cleanup with PanSaver, available at www.atlantic-pub.com. PanSaver is a high-temperature (400°F/204°C) material designed as a commercial pot and pan liner that keeps pans clean and can be used to store leftovers.

• Use pre-prepared products. Almost all ingredients come prepped, portion-controlled, or prepared for reheating. Not all are good candidates for your restaurant, but many can be incorporated into your food offerings, without any noticeable quality decline. Food that is eaten in its most natural state — washed, cut, and ready to serve, like fruit and vegetables — is an obvious choice. Bread products that are proof and bake- or brown-and-serve are another option. Tea and lemonade concentrates are very common and taste better than powdered versions.

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