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Shiftzen Helps Restaurants Focus On Razor Thin Margins

A long time ago, a restaurant veteran asked me this question-"Want to make a small fortune in the restaurant business?" As a gullible manager trainee I nodded my head with wide eyes, eagerly awaiting his answer. The veteran slapped me on the back and said "Well then start with a large fortune!" and walked away.

While this may not necessarily be true, there is a common misconception that restaurants are goldmines. According to a 2010 survey conducted by the National Restaurant Association, average pre-tax profit margin for restaurants ranged from 2-6%. There is little room for mistakes on controllable costs such as food and labor. Restaurant operators need every advantage they can get to be profitable, including utilizing employee scheduling software.

ShiftZen restaurant scheduling system allows operators to generate labor reports based on staff, day, period or position type. Operators can also view their labor costs and hours per employee, thus generating a labor percentage based on projected sales in real time. These features allow operators to keep razor sharp focus on their labor costs. 

These report features are important because they don't hurt the guests. A common mistake operators making in trying to control labor costs is blindly slashing payroll hours. This reckless style of management ultimately affects the guest by endangering their experience in the restaurant. Labor reporting features allow operators to identify wasted hours and allow  them to build a leaner, more profitable schedule. A strategically-minded schedule with the guest experience in mind.

Does a restaurant need employee scheduling software? Of course not. They don't need it like they need a cash register or a fryer. But, restaurant scheduling software is a great tool to help manage labor costs and make a restaurant more profitable. Then a restaurateur can build a small fortune without starting with a large one.

-Richard Averitte, Marketing Director, ShiftZen