This document outlines key concepts related to staff planning, labor costs, productivity, and sales metrics for restaurants. It discusses the differences between salary and wages, gross and net pay, minimum wage, overtime pay, and tipping. It also defines labor costs, productivity standards and scheduling, factors affecting employee productivity, and metrics for measuring employee turnover. Finally, it summarizes various sales concepts used in restaurants like total sales, average check, sales per serving person, average sale per seat, and seat turnover.

1. STAFF PLANNING AND
LABOR COST CONTROL
Presented by:
PROF. MARIANNE T. EVANGELISTA, MSHRM

2. CHAPTER 5 -COURSE OUTLINE
• Staff Planning and Labor Cost Control
– Salary and Wages
– Gross pay and Net Pay
– Minimum Wage, Overtime Pay, TIP / Tipping
– Labor Cost
– Productivity Standards
– Productivity Scheduling
– Factors affecting employee productivity
– Employee Turnover
• Sales Concept
- Total Sales
- Sales Price
- Average Check/ Average Cover
- Sales per serving Person
- Average Sale per serving Person
- Average Sale per Seat
- Seat Turnover

3. DIFFERENCE BETWEEN
SALARY AND WAGES
SALARY - a fixed regular payment,
typically paid on a monthly or
biweekly basis but often expressed as
an annual sum, made by an employer to
an employee.
WAGES - A fixed regular payment,
typically paid on a daily or weekly
basis, made by an employer to an
employee, esp. to a manual or
unskilled worker.

4. DIFFERENCE BETWEEN
GROSS PAY AND NET PAY
GROSS PAY - refers to the total
amount a person makes before any
deductions such as taxes are made.
NET PAY – on the other hand refers to
the amount left when all deductions
such as taxes and health benefits are
made.

5. MINIMUM WAGE
• A minimum wage is the lowest hourly,
daily or monthly remuneration that
employers may legally pay to workers.
• Equivalently, it is the lowest wage at
which workers may sell their labor.
• Although minimum wage laws are in
effect in many jurisdictions,
differences of opinion exist about the
benefits and drawbacks of a minimum
wage.

6. OVER TIME PAY
• Overtime is the amount of time someone
works beyond normal working hours.
Normal hours may be determined in several
ways:
- by custom (what is considered
healthy or reasonable by society),
- by practices of a given trade or
profession,
- by legislation,
- by agreement between employers
and workers or their
representatives.

7. TIP / TIPPING
• A tip “TO INSURE PROMPTNESS” (also called
a gratuity) is a sum of money tendered to
certain service sector workers for a
service performed or anticipated.
• Such payments and their size are a matter
of social custom.
• Tipping varies among cultures and by
service industry. In some industries, a
certain percentage of the bill is expected
as a tip.

8. LABOR COST
• Labor Expense includes salaries and wages, but it
consists of other labor-related costs as well.
• Payroll refers to the gross pay received by an
employee in exchange for his or her work.
• A salaried employee receives the same income per
week or month regardless of the number of hours
worked.
• Minimum staff is used to designate the least
number of employees, or payroll dollars, required
to operate a facility or department within the
facility.
• Fixed Payroll refers to the amount an operation
pays in salaries.
• Variable Payroll consists of those dollars paid to
hourly employees. Sometimes employees have both
a fixed and variable element to their pay.

9. PRODUCTIVITY STANDARDS
Output
Input =Productivity Ratio
Cost of Labor
Total Sales =Labor Cost %
Total Sales
Labor Hours Used = Sales per Labor Hour
Cost of Labor
Guests Served = Labor Dollars per Guest Served

10. PRODUCTIVITY SCHEDULING
hour 7.5
Productivity = covers = 60 = 0.125
Productivity X Forecast Cover = Scheduled Hours
0.125 x 3000 Covers = 375 hours

11. FACTORS AFFECTING
EMPLOYEE PRODUCTIVITY
1. Employee Selection
2. Training
3. Supervision
4. Scheduling
5. Breaks
6. Morale
7. Menu
8. Convenience vs. Scratch Preparation
9. Equipment
10. Service Level Desired

12. • A job specification is a listing of the
personal characteristics needed to
perform the tasks contained in a
particular job description.
• A job description is a listing of the
tasks that must be accomplished by the
employee hired to fill a particular
position.
• Task training is the training
undertaken to ensure an employee has
the skills to meet productivity goals.

13. EMPLOYEE TURNOVER
Employee Turnover Rate = # of Employees Separated
# of Employees in Workforce
A voluntary separation is one in which the employee
made the decision to leave the organization.
An involuntary separation is one in which
management has caused the employee to separate
from the organization.
Employee Turnover Rate =
Number of Employees Separated
Number of Employees in Workforce

14. MANAGING OTHER EXPENSES
• Other expenses are those items that
are neither food, beverage, nor labor.
 While there are many ways in which to
consider other expenses, two views of
these costs are particularly useful
for the foodservice manager. They
are:
1.Fixed, variable, or mixed
2.Controllable or non-controllable

15. SALES CONCEPT
• TOTAL SALES – is a term used to refer to the
total volume of sales in any given period.
• SALES PRICE – refers to the amount charged a
customer for each unit sold
• AVERAGE CHECK / AVERAGE COVER – is
determined by dividing total sales by the
number of customer.
• SALES PER SERVING PERSON – is total volume of
sales for which a given server has been
responsible in a given time period.
• AVERAGE SALE PER SERVING PERSON – is total
sales for an individual server divided by the
number of customer served by that individual.

16. SALES CONCEPT
• AVERAGE SALE PER SEAT – is total sales for a
given time period divided by the number of
seats in the restaurant.
• SEAT TURNOVER – or turnover, refers to the
number of seats occupied during a given
period, or the number of customers served
during that period, divided by the number of
seats available

17. End of
Chapter 05