How Can You Reduce Your Labor Expenses

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1 Full Service How Can You Reduce Your Labor Expenses without Sacrificing Exceptional Service?

2 As food and labor costs climb, operators will rely more on technology to help manage costs and boost productivity. National Restaurant Association 2008 Restaurant Industry Forecast

3 Four Reasons You Need Kronos for Dining OPERATIONAL MARGINS ARE NARROWING. While you need to increase the quality of customer service, the reality is that you also need to control labor costs. If you reduce unnecessary labor costs and improve workforce productivity, the likelihood of expanding your margins increases. NONCOMPLIANCE CAN COST YOU. It s true that complying with labor-related laws, regulations, and policies can be expensive. But it s best to proactively mitigate this risk and increase organizational compliance because the alternative could cost you your business. YOU MUST RECRUIT, SELECT, AND RETAIN THE BEST. To effectively compete, you must be able to quickly source, screen and hire the best employees. Then you have to be sure your staff is happy working for you. Satisfied employees create a better customer experience and are less likely to leave you for one of your competitors. YOU MUST INCREASE REPEAT BUSINESS. You need to hire employees who live and breathe customer service. And you have to make sure they re in the right place at the right time, keeping your customers happy and turning new customers into regulars.

4 CONTROL LABOR COSTS Improve operational margins Operating margins in full-service restaurants have been eroding for several years due to increasing labor costs. Kronos for Dining provides the tools to effectively manage these costs by: Decreasing employee turnover. Now you can reduce costly annual turnover by selecting employees who fit your business best and who will stay longer. Managers can select from a larger applicant pool, screen for traits that make for an ideal employee, and screen out people who don t meet minimum qualifications, reducing cost and time to hire. Reducing overscheduling. Through optimized scheduling, Kronos for Dining helps ensure proper staffing coverage to meet customer service needs. The combination of sales and labor forecasting and best-fit schedules all automatically generated helps keep customer service levels up and unnecessary labor costs down. MINIMIZE COMPLIANCE RISK Automate and drive accuracy Litigation on behalf of non-exempt restaurant employees over alleged violations of state and federal labor laws like the Fair Labor Standards Act (FLSA) and the Family Medical Leave Act (FMLA) is on the rise. Kronos for Dining facilitates compliance with government regulations and labor laws by automating manual time and attendance and payroll processes, and scheduling using business rules minimizing the potential for human error and avoiding illegal scheduling assignments. Complete automation helps reduce unauthorized time from being worked and enforces that breaks mandated by law are taken. The solution further reduces litigation and regulatory risk by centralizing employee attendance and leave-case information: enforcing labor laws uniformly across restaurant locations while generating accurate and detailed audit trails that enhance compliance efforts. In 2007, the Wage and Hour Division of the Department of Labor collected a record $220 million in back wages for FLSA overtime violations Back Wages Collected $212,537,554 $220,613,703 Change of 3.80% Employees Receiving Back Wages 342, ,624 Change of 0.21% FY 2003 FY 2007

5 The Average Total Cost to replace an hourly restaurant employee is $2,366, while the cost to replace a management employee is $19,661. Source: 2008 Workforce Report People Report SELECT ONLY THE BEST Recruit and retain top employees Putting the right people in front of your customers is critical to delivering exceptional service and driving that all-important repeat business. Kronos for Dining helps you improve the cost and efficiencies of your frontline hiring process allowing you to recruit, select, hire, and retain the best employees. Our employee selection tools automate the hiring process helping you to quickly source, qualify, and identify candidates who are most likely to be successful in your work environment and stay with you longer. Once you ve hired the best staff, Kronos for Dining helps maintain employee satisfaction by balancing employee availability and preferences in your schedules. Through employee self-service, you can give your staff quick and convenient access to time worked and leave balances, and make it easy for employees to request certain work hours and schedule time off. Respecting employee preferences helps reduce absences, turnover, and costs, and increases retention. IMPROVE WORKFORCE PRODUCTIVITY Drive same-store sales Recruiting a workforce with the exact skills needed to succeed helps increase both employee and customer satisfaction, since happy employees provide faster and better service. And now, with the reduction in administrative tasks associated with hiring, managers can focus on improving workforce productivity, like increasing speed and accuracy of service and training employees key factors that drive repeat business. Kronos for Dining allows managers to create appropriate staffing plans based on historical trends, day parts, and upcoming events plans that take labor standards and restaurant profile data into account. Our automated forecasting and scheduling system then uses this high-quality information to create best-fit schedules optimized to labor budgets and customer demand. This means that your workforce is in the right place at the right time, attending to the customer s every need.

6 Kronos is the global leader in delivering workforce management solutions in the cloud. Tens of thousands of organizations in more than 100 countries including more than half of the Fortune 1000 use Kronos to control labor costs, minimize compliance risk, and improve workforce productivity. Learn more about Kronos industry-specific time and attendance, scheduling, absence management, HR and payroll, hiring, and labor analytics applications at kronos.com. Kronos: Workforce Innovation That Works. Put Kronos to work for you: kronos.com/dining Kronos Incorporated 297 Billerica Road Chelmsford, MA , Kronos and the Kronos logo are registered trademarks and Workforce Innovation That Works is a trademark of Kronos Incorporated or a related company. For a full list of Kronos trademarks, please visit the trademarks page at All other trademarks, if any, are the property of their respective owners. All specifications are subject to change. All rights reserved. RT0131-USv1