Managing Labor Cost Using Restaurant Point of Sale Systems

A few of years ago, controlling labor cost forhours, my kitchen hours and my assistant's hours all in
food-service establishments was done mostly bya breakdown."
natural process. Having an effective labor controlYour POS Systems as your extra pair of eyes
meant by being able to manage employees during aThere are POS reports that shows trends over time
rush to keep the operation up and running, and sendwhich eases labor cost tracking manager
them home respectively when the rush slowly shrinks.performance shift-to-shift, according to Jennifer Wiebe
Restaurant managers kept track of business fromthe marketing manager of Speedline Solutions. This
previous weeks in order to make projections of futuresystem also provide detailed reports on manual editing
sales, and then laboriously converted those numbersof time clock reports where you can easily spot
into an employee schedule. And when the day is done,potential abuse.
the manager sits down with a sack of time cards,The time clock reports provides important
calculating for the day's labor percentage wheredocumentation that can be used as a basis for labor
success or failure of those efforts is going to beboard reviews of attendance-related employee
determined.terminations.
It's a good thing that those days are no longer with usAnd by the end of the day, a good POS system like
and a restaurant's point-of-sale system has takenPhillips' can generate, export and integrate file reports
over many of the functions a restaurant managerof your payroll and employee information, store
used to do by hand.accounting systems or third-party payroll services.
With the minimum wage set to rise to $7.25 over theThe POS also can assist managers properly assign
next few years, operators are looking for every toolemployee-shift by the forcasted sales and by
they can find to keep labor costs under control.generating a schedule from them.
Jim Phillips general manager of a Pizza Inn restaurant,Managers can efficiently schedule to meet their labor
tracks labor throughout the day via the store's Point oftargets using sales forecasting and their labor plans.
Sale System. He uses a restaurant POS system fromPixel Point's scheduling tool is linked with employee skills
Pixel Point.and availability which can speed up scheduling
"I check my labor cost every 45 minutes when I'm inprocess."
the restaurant," said Phillips. "I can pull it up on theRestrictions on hours and breaks for minor employees
terminal, hit labor cost and it tells me where my laborcan be enforced through schedule- and time-clock
stands, or if I want to I can go into my hourly stats andalerts. The schedule can also include a built-in time
look at those," says Phillips.clock that requires a manager override for untimely ins
The restaurant POS system can display forecastedand outs.
sales, actual sales and a variance between the two,Mostly, operators sets their clock-in and clock-out
as well as scheduled versus actual hours.times within 5 minutes before or after the actual time.
"The system tells me everything I need to know,""Employees can't clock in until 5 minutes before their
Phillips said. "I can look at the POS and see the numberscheduled shift or clock out late without a manager
of pickups for any given hour; the number of dine-insoverride. The system tells me if an employee is
and the number of buffets. It gives me my supervisorsupposed to be off but he is still on the clock.