How much do your employees really know about the state of your business?

I recently read a comment on one of those online restaurant review sites, posted by a customer who obviously had never run a restaurant. He had a couple of negative things to say about the place, but one which struck me was his complaint that one of the imported beers on offer was being sold for 30% more than at the grocery store down the street! He had half a mind to go and buy his beer there!

Over the years I have encountered a number of customers who keep a running tally in their heads…….chicken breast: $4.50 / lb, potatoes: 89 cents / lb, wine: $6 bottle, etc…..hey! why are these jerks charging me $16 for this meal??. What they fail to see is the cost of rent, utilities, labor, insurance, inventory, taxes, investors, L & I fees, FICA, FUTA, percentage rent, etc etc etc. People either get it or they don’t and it is counter-productive to argue.

However, even more disturbing is the employee who sees how busy the restaurant is and mentally pictures all those dollars going straight into the owner’s pocket. Geeeeez, I’m getting minimum wage, and I have to tip out the bartender and the host, and this guy is walking out the door with thousands! It’s not faaaaair. Oh dear oh dear. This is the perfect recipe for an alienated employee to start thinking that she just might even out the scales with a little extracurricular theft.

The fact is that very few employees, especially those just starting out in the working world, understand that out of every dollar generated from sales, anywhere from just a penny to a dime (for very very good operators) goes home with the owner as ‘profit’. And of those profit dollars, the prudent operator sets money aside for future improvements, expansion, or just a rainy day.

Just for grins, all you operators out there, break a dollar into small coins and ask a group of employees to move the coins into different catagories, i.e. food cost, labor, rent. (Or even more striking, break a $100 bill into smaller bits, with coins, and let them see how little profit is left.) Use this as a way to encourage them work on ways to eliminate waste, cut hours, turn tables, or whatever you think has the potential of increasing profitability. Once they have grasped the basics, why not let them see a snapshot of your actual P & L to make it real and transparent?. Believe me, there will be many suprised faces and I would bet that your staff will make a better effort to eliminate waste and concentrate on sales!

Dorothy

Views: 0

Tags: managers

Comment

You need to be a member of FohBoh to add comments!

Join FohBoh

Advertisments

 

DEPARTMENTS

Social Wine Club for Craft Wineries

Smartbrief

The Sip

The Sip: Stay up-to-date on the beer, wine and spirits category with original content from SmartBrief -More

New food offerings helped Starbucks boost sales

Baked goods, breakfast sandwiches and the first price increases in nearly four years helped lead Starbucks to a 7% same-store -More

JOBS & CAREERS

Posting a job or finding a job starts here at FohBoh. Call us about special $50 posting packages to syndicate across all major jobs boards.

National News

Ward Whitworth Named President for On The Border Mexican Grill

On The Border Mexican Grill & Cantina, which was recently acquired by Border Holdings, LLC, an affiliate of Argonne Capital Group, today announced the appointment of Ward Whitworth as President of On The Border.

The Melting Pot Targets Houston and El Paso, Texas for Franchise Expansion

Restaurants, Inc. announced today that it is actively seeking franchisees to expand its presence throughout the Lone Star State, naming El Paso and Houston as target markets for future franchise development.

Encore Restaurants Purchases 8 Existing Five Guys Restaurants, Plans to Develop 45 More

Encore Restaurants, LLC, a subsidiary of Dallas-based Encore Enterprises, Inc., has announced the purchase of eight existing Five Guys Burgers and Fries restaurants across central California including Elk Grove, Fresno, Lodi, Natomas, Roseville, Stockton, Tracy, and West Sacramento.

Takeout Orders to Hotels Jumped 125% in Popularity in Last Three Years

For many Americans, hotel room service is considered a travel luxury; however, data from PFK Hospitality Research1 suggests that room service revenues fell 9.5 percent from 2007 to 2012, with some hotels shuttering unprofitable operations altogether.

National Restaurant Association Praises House and Senate Commerce Committee Passage of Travel Promotion Act

Yesterday the National Restaurant Association (NRA) praised the House passage and Senate Commerce Committee markup of the Travel Promotion, Enhancement and Modernization Act of 2014. The bipartisan legislation reauthorizes Brand USA, the nation’s first global marketing campaign, to promote the United States as a destination for international travelers.

CROWD FUNDING

If you are looking for capital to start or grow your restaurant, create the next 501c3, develop and launch the next app for the restaurant industry,or want to help your peers in some meaningful way, we want to know about it.

TED TALKS VIDEO

TED: Ze Frank: Are you human? - Ze Frank (2014)

Have you ever wondered: Am I a human being? Ze Frank suggests a series of simple questions that will determine this. Please relax and follow the prompts. Let's begin …

TED: Heather Barnett: What humans can learn from semi-intelligent slime - Heather Barnett (2014)

Inspired by biological design and self-organizing systems, artist Heather Barnett co-creates with physarum polycephalum, a eukaryotic microorganism that lives in cool, moist areas. What can people learn from the semi-intelligent slime mold? Watch this talk to find out.

TED: Shih Chieh Huang: Sculptures that’d be at home in the deep sea - Shih Chieh Huang (2014)

When he was young, artist Shih Chieh Huang loved taking toys apart and perusing the aisles of night markets in Taiwan for unexpected objects. Today, this TED Fellow creates madcap sculptures that seem to have a life of their own—with eyes that blink, tentacles that unfurl and parts that light up like bioluminescent sea creatures.

TED: Nikolai Begg: A tool to fix one of the most dangerous moments in surgery - Nikolai Begg (2013)

Surgeons are required every day to puncture human skin before procedures — with the risk of damaging what's on the other side. In a fascinating talk, find out how mechanical engineer Nikolai Begg is using physics to update an important medical device, called the trocar, and improve one of the most dangerous moments in many common surgeries.

© 2014   Created by FohBoh.

Badges  |  Report an Issue  |  Terms of Service