Labor
What is Labor Cost?
Total Sales/Labor Hours Used
What is Sales per Labor Hour
(this will be in dollars)
The extra amount of an ingredient decided to kept on hand to meet higher than anticipated demand
What is safety stock?
Expenses where operators have highest exposure for losses and the greatest opportunities to impact profitability in the short term
What are Prime Costs?
Cost of Sales + Payroll Expenses
Beginning Inventory + Purchases - Ending Inventory - Employee Meals
What is Cost of Food Sold?
You can measure employee turnover with this productivity measurement
# of Employees Separated/# of Employees in Workforce
Cost of Labor/Total Sales
What is Labor Cost %
Storage capacity
Item perishability
Vendor delivery schedule
Potential savings
Operating calendar
Importance of stock outages
Value of inventory dollars to the operator
What determines inventory levels?
A cost that remains constant despite increases or decreases in sales volume.
What is a fixed cost?
What cost is an employee meal considered?
What is Labor Cost?
True or False, there is only 1 employee turnover ratio.
What is false?
Guest Served/Cost of Labor
What is Guests Served per Labor Dollar?
ITEM: French Fries
Usage per day: 5 cases
Order Time: 7 days
Safety Stock: 2 cases
What is the par stock maximum?
5 cases/day * 7 days = 35 cases
35 cases + 2 cases (safety stock)=
37 cases
Other Expenses/Total Sales =
What is Other Expense %
Beginning Inventory: $35,000
Ending Inventory: $32,000
Employee Meals: $725
Purchases: $37,000
What is the cost of food sold?
What is: $39,275
Menu, Food Prep Methods, Desired Service Levels, Quality of Training
What are factors impacting quality and number of staff needed to operate a restaurant?
What is not affected by the cost of labor, changes in menu selling prices and total revenue dollars generated
What is Guest Served per Labor Hour?
Guests Served (#)/Labor Hours Used
Item Amount * Item Value = ?
What is Item Inventory Value?
An expense that a manager can neither increase or decrease
What is a non-controllable expense?
Cost of Food Sold/Food Sales =
What is Food Cost %
It is controllable and variable.
How do you know much revenue does each seat produce in an hour?
Revenue/Available Seat Hours
RevPASH
When items are bought first and sold first and inventory is valued at the cost of the items purchased last.
What is the FIFO method?
An expense management should focus on
What is a controllable expense?
The cost of an item from standardized recipes
What is the Standard Cost?