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A restaurant operates exactly on budget... 1. When a restaurant operates exactly on budget, its labor cost (including hourly wages, salaries, and benefits) is 30%

A restaurant operates exactly on budget...

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1. When a restaurant operates exactly on budget, its labor cost (including hourly wages, salaries, and benefits) is 30% of sales. If sales do not meet their targets, should an owner expect the management to still hit a labor cost percent of 30%? In 50 to 100 words please explain why or why not? 2. Why does absenteeism (for any reason) impact labor cost so much? In other words, if one employee is out (and not getting paid) while another employee works his job for him, why isn't that essentially an equal swap in labor cost? Please answer in 25 to 50 words. 3. A chef earns an additional bonus for every percentage point he reduces the food cost percent. There are no other bonuses. Is this a good bonus system from management's point-of-view? In 50 to 100 words, please explain what possible problem exists with this system? 4. Your company's sales volume is projected to decline significantly in the upcoming year due to a poor local economy. You employ full-time senior workers with high wage rates, part-time workers with low wage rates, and salaried managers who earn benefits. You need to cut your labor cost. How would you do it? What are the possible downsides of your choices? In 50 to 100 words please explain your thoughts. 5. You have two different teams of back-of-the-house workers in your restaurant. One group works Monday through Thursday. The other works Friday through Sunday. You notice that the Friday through Sunday group consistently has a higher sales per person-hour and covers per person-hour ratio than the other group does? Should this be a concern? How would you address it, if at all, if the difference in ratios between the two groups is relatively small? How would you address it if the difference is extremely large? Please answer in 50 to 100 words

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