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Labor assignment: 2018 Numbers are below Assumptions Sales $3,000,000 Total Direct Labor 25% BOH and FOH Direct Labor cost are split 50/50 meaning the both
Labor assignment: 2018 Numbers are below Assumptions Sales $3,000,000 Total Direct Labor 25% BOH and FOH Direct Labor cost are split 50/50 meaning the both use the same amount of labor dollars. ALL FOH employees make min wage Average wage in the BOH is $12.50 excluding tips from the tip pool which add on average another $2.50 an hour Indirect labor GM- $60,000 FOH Manger-$50,000 Kitchen Manger $50,000 Assistant Kitchen Manager $40,000 Kitchen lead- $30,000 Expectation is that these people rk4s-50 hours a week Please explain the impact on a business like the one listed above with the Following 4 changes that will be occurring at the start of 2019 1. The minimum wage increase (11.50 increased to $12) 2. The sick leave law going in to place (1 hour of sick leave for every 40 hours worked) 3. Tip credit and tip pooling procedures changing as discussed in class (assume they do not change) 4. The base salary and overtime rules changing. (any salary under $70,00 must be paid overtime, currently that amount is $ 27,000 Please describe the impact of all of these on this fictitious business and how you might begin to try and solve some of these issues and how you would absorb these changes. What financial changes and or cultural changes might these change in rules lead to? Please prove to me each step of the way with numbers that support your case. Please list and describe assumptions you will be making throughout the process and what they
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