| Managing employees in the food service or | | | | change on a monthly basis |
| hospitality industry is a process that quickly | | | | - Inventory including food and beverage expenses |
| becomes a nightmare for both managers and | | | | can fluctuate based on a number of factors, and |
| employees. | | | | changing suppliers is time consuming and difficult. |
| Staff expectations and requirements will collide | | | | - Labor costs will vary on a monthly basis based |
| with business requirements leading to higher | | | | on the prevailing wage, employees leaving (or |
| employee turnover, lower employee retention, | | | | being fired), management practices, staff |
| and a reduction in "the bottom line" for your | | | | communication, and a number of other factors |
| restaurant. | | | | that can be directly controlled by managers. |
| Most businesses in the food service and hospitality | | | | Of these three line items, managers have the |
| industries such as table service restaurants, bars, | | | | most control over labor costs, which can be |
| clubs, country clubs, and fast food restaurants | | | | manipulated to improve business profits. Inversely, |
| have very little control over the monthly budget. | | | | improper management of labor costs will reduce |
| Once a lease is signed the building and utility costs | | | | the business's ability to satisfy customers and |
| will remain relatively fixed, licensing fees and | | | | expose the business to the risk of liability lawsuits |
| insurance rates will not change drastically year | | | | and labor violation fines - instantly slashing business |
| over year, and credit card processing fees usually | | | | profitability! |
| scale as the business grows. | | | | Improving employee labor scheduling and time / |
| Managers, however, can directly influence three of | | | | attendance management should be an ongoing |
| the largest budget line items: | | | | effort in your business that results in happier staff |
| - Advertising expenses are normally purchased in | | | | members, better customer satisfaction, and |
| 3 - 12 month quantities, and are not likely to | | | | higher profits for your company. |