Managing Labor Costs

Read this chapter. Pay particular attention to the areas of labor cost and labor productivity. How can the service industry maintain or reduce labor costs while simultaneously boosting performance?

STAFFING GUIDE

Peak Periods

When the staffing guide is used to develop a staff schedule, the supervisor needs to consider the peak periods. For example, if the volume reaches 150 meals, 10.5 labor hours may be needed in the kitchen. An analysis of sales shows that the busiest period is between 6 p.m. and 9 p.m. The supervisor might schedule the cooks so that the first cook comes in from 4:00 p.m. to 9:30 p.m. and the second cook comes in from 6:00 p.m. to 11:00 p.m. This would ensure that there are two cooks available to prepare meals throughout the busiest period.