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1
IMPROVE LABOR COSTS &
GROW PROFIT IN YOUR KITCHEN
TRICKS OF THE TRADE FROM AN OPERATOR PANEL
2
Restaurant Technologies Overview
3
Restaurant Technologies Customers
4
SAFER, SMARTER KITCHENS
Speakers
DAVID EHA
Director, National
Accounts
Restaurant Technologies
MIKE KEELER
Former Head of Safety
Yum! Brands and
Bloomin’ Brands
RICK BORCHERS
President & COO
DavCo Restaurants
DAVID NORMAN
CEO
DavCo Restaurants
5
Troubling Trends
$15 MINIMUM
WAGE
DIFFICULTY
HIRING CHEFS
WAGE/HOUR
RESTRICTIONS
WORKERS’ COMP
COSTS INCREASING
OSHA FINES
INCREASING 78%
LABOR TURNOVER
INCREASING
$
6
Back-of-House
Accounts for Nearly
60% of Labor Costs
Source: John R. Walker, The Restaurant: From
Concept to Operation, Fifth Edition (2007)
Back-of-House Inefficiencies
7
2017 Minimum Wage Increases
Beneficial to obtain new talent and retain current labor force but
strategic planning is needed to offset costs.
8
Hourly Management
9
Safety is the most
overlooked area for
improvement in the back-
of-house – but it has a big
impact on operations,
retention and morale
According to studies from OSHA,
for every $1 spent on safety
programs, businesses can save $4
to $6 in costs associated with
injuries and fatalities.
10
Slippery Slope of Increasing Cost
Frequency Cost
• Average-size restaurant has 4
claims per year
– 1 lost time (indemnity) claims
– 3 minor (medical-only claims)
• Highly concentrated – Many
restaurants go all year with no
injuries – but 20% of locations =
55% of claims
• Average medical only
claim is minor:
– $1,036 per claim
• Lost time claims are
expensive on average:
– $42,586 per claim
Average risk for average restaurant: $46,000 per year
Source: NCCI Restaurant Data – Fully Developed Cost, York Risk Services, Willis Towers Watson
11
Panel Discussion
12
Q & A

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2024.06 CPMN Cambridge - Beyond Now-Next-Later.pdf
2024.06 CPMN Cambridge - Beyond Now-Next-Later.pdf2024.06 CPMN Cambridge - Beyond Now-Next-Later.pdf
2024.06 CPMN Cambridge - Beyond Now-Next-Later.pdf
 

Improve Labor Costs & Grow Profit in Your Kitchen

  • 1. 1 IMPROVE LABOR COSTS & GROW PROFIT IN YOUR KITCHEN TRICKS OF THE TRADE FROM AN OPERATOR PANEL
  • 4. 4 SAFER, SMARTER KITCHENS Speakers DAVID EHA Director, National Accounts Restaurant Technologies MIKE KEELER Former Head of Safety Yum! Brands and Bloomin’ Brands RICK BORCHERS President & COO DavCo Restaurants DAVID NORMAN CEO DavCo Restaurants
  • 5. 5 Troubling Trends $15 MINIMUM WAGE DIFFICULTY HIRING CHEFS WAGE/HOUR RESTRICTIONS WORKERS’ COMP COSTS INCREASING OSHA FINES INCREASING 78% LABOR TURNOVER INCREASING $
  • 6. 6 Back-of-House Accounts for Nearly 60% of Labor Costs Source: John R. Walker, The Restaurant: From Concept to Operation, Fifth Edition (2007) Back-of-House Inefficiencies
  • 7. 7 2017 Minimum Wage Increases Beneficial to obtain new talent and retain current labor force but strategic planning is needed to offset costs.
  • 9. 9 Safety is the most overlooked area for improvement in the back- of-house – but it has a big impact on operations, retention and morale According to studies from OSHA, for every $1 spent on safety programs, businesses can save $4 to $6 in costs associated with injuries and fatalities.
  • 10. 10 Slippery Slope of Increasing Cost Frequency Cost • Average-size restaurant has 4 claims per year – 1 lost time (indemnity) claims – 3 minor (medical-only claims) • Highly concentrated – Many restaurants go all year with no injuries – but 20% of locations = 55% of claims • Average medical only claim is minor: – $1,036 per claim • Lost time claims are expensive on average: – $42,586 per claim Average risk for average restaurant: $46,000 per year Source: NCCI Restaurant Data – Fully Developed Cost, York Risk Services, Willis Towers Watson