TAILIEUCHUNG - Lecture Food and beverage cost control (5th Edition): Chapter 7 - Dopson, Hayes, Miller
Chapter 7 - Managing the cost of labor. This chapter presents the following content: Labor expense in the hospitality industry, evaluating labor productivity, maintaining a productive workforce, measuring current labor productivity, managing payroll costs, reducing labor-related costs, technology tools. | Chapter 7 Managing the Costs of Labor Main Ideas Labor Expense in the Hospitality Industry Assessing Labor Productivity Maintaining a Productive Workforce Measuring Current Labor Productivity Managing Payroll Costs Reducing Labor-Related Costs Technology Tools Labor Expense in the Hospitality Industry In today’s market, labor is so expensive. Methods must be used to accomplish necessary tasks and stay within the allotted labor budget. In some foodservice establishments, the cost of labor actually exceeds the cost of food and beverage products. Labor Expense in the Hospitality Industry Labor Expense includes salaries and wages, but it consists of other labor-related costs as well. FICA taxes, unemployment taxes, worker’s compensation, group life insurance, health insurance, pension plan payments, employee meals, employee training, employee transportation, employee uniforms, employee housing, vacation/sick leave, tuition reimbursement programs, and employee incentives and bonuses. Labor Expense in the Hospitality Industry 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. Payroll is one part of labor expense. Labor Expense in the Hospitality Industry Minimum staff is used to designate the least number of employees, or payroll dollars, needed 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. Do not confuse minimum staff with fixed and variable payroll. Labor Expense in the Hospitality Industry Management has little control over fixed labor expense, but nearly 100% control over variable labor expense. Labor expense refers to the total of all costs associated with maintaining a foodservice workforce. Total labor expense will always exceed that of payroll. Labor .
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