Hospitality Management: Rostoring Highlands Restaurant

Executive Summary

Ryan runs Highlands Restaurant alone and works for 70 hours a week. The total labor costs operate at 35%. Ryan feels that developing a roster will help reduce his working hours and improve the productivity of the restaurant staff. The main objectives of the restring are to reduce the Total Labour Cost to 30%, reducing the working hours for Ryan to 50 hours per week, increase the productivity of the employees, and to meet the rostering requests of the staff. The importance of controlling staff costs is to improve the profits made by the company. It is also a measure of the efficiency of the staff in achieving the goals of the company. The targets were met by increasing the working hours of the staff workers and reducing the wage rate for each employee. The final outcomes show that there was a small deviation from the targeted costs. Therefore, there is a need to improve the efficiency of the rostering process.

Timelines

Monday

On Monday the restaurant opens from 7.00 AM to 12.00 PM. The restaurant covers will be spread as follows: Breakfast 220 covers, Lunch menu 175 covers, and Dinner menu 120 covers. The number of staff required for the breakfast menu is one responsible person, six levels 2/ level 3 staff. Ryan will manage the operations in the morning hours, while Ben will be allocated service duties during this period. Tiffany takes an off-day. Sarah works from 7.00 to 12.00 and takes a break. She resumes working from 16.00 to 19.00. Raj does not work on Monday while Olivia works from 12.00 to 15.00 and takes a break up to 19.00, where she works up to 24.00. jack does not work on Monday.

Tuesday

On Tuesday the restaurant opens from 7.00 AM to 12.00 PM. The restaurant covers will be spread as follows: Breakfast 110 covers, coffee/ Cake 22 covers, Lunch menu 70 covers, and Dinner menu 70 covers. The number of staff required for the breakfast menu is one responsible person, three levels 2/ level 3 staff. One assistant manager will be required to oversee the work. During the coffee session, one responsible person will be allocated and one level 2/ level 3. During the lunch menu, one responsible person will be allocated and five levels 2/ level 3 staff. During the dinner menu, one responsible person and five levels 2/ level 3 staff will be allocated. Ryan works from 14.00 to 24.00 on Tuesday, while Ben does not work during this day. Tiffany works from 7.00 to 17.00. Sarah works from 12.00 to 15.00 and takes a break. She resumes working from 19.00 to 24.00. Raj works from 7.00 to 11.00 and takes a break. He then resumes working from 12.00 to 14.00. Olivia takes a break on Tuesday. Jack works from 11.00 to 15.00 and breaks up to 18.00 where he works up to 22.00.

Wednesday

On Wednesday the restaurant opens from 7.00 AM to 12.00 PM. The restaurant covers will be spread as follows: Breakfast 110 covers, coffee/ Cake 27 covers, Lunch menu 95 covers, and Dinner menu 65 covers. The number of staff required for the breakfast menu is one responsible person and 1 level 2/ level 3 staff. One assistant manager will be required to oversee the work. During the coffee session, one responsible person will be allocated and one level 2/ level 3. During the lunch menu, one responsible person will be allocated and seven levels 2/ level 3 staff. During the dinner menu, one responsible person and five levels 2/ level 3 staff will be allocated. On Wednesday, Ryan takes a break while Ben works from 7.00 to 17.00; and Tiffany works from 14.00 to 24.00. Sarah works between 11.00 to 15.00 and 18.00 to 22.00. raj works from 12.00 to 15.00 and 19.00 to 24.00. Olivia works from 7.00 to 11.00 and 12.00 to 14.00. Jack takes a break on Wednesday. Casual worker 13 works from 18.00 to 19.00 and 22.00 to 24.00.

Thursday

On Thursday the restaurant opens from 7.00 AM to 12.00 PM. The restaurant covers will be spread as follows: Breakfast 110 covers, coffee/ Cake 20 covers, Lunch menu 145 covers, and Dinner menu 90 covers. The number of staff required for the breakfast menu is one responsible person, three levels 2/ level 3 staff. One assistant manager will be required to oversee the work. During the coffee session, one responsible person will be allocated and one level 2/ level 3. During the lunch menu, one responsible person will be allocated and ten levels 2/ level 3 staff. During the dinner menu, one responsible person and six levels 2/ level 3 staff will be allocated. On Thursday, Ryan works from 7.00 to 17.00 while Ben works from 14.00 to 24.00. tiffany takes a break on Thursday. Sarah also takes a break on Thursday. Raj works from 12.00 to 15.00 and 19.00 to 24.00. Olivia works from 7.00 to 12.00 and then from 13.00 to 16.00. jack works from 12.00 to 15.00 and 18.00 to 23.00.

Friday

On Friday the restaurant opens from 7.00 AM to 1.00 PM. The restaurant covers will be spread as follows: Breakfast 125 covers, coffee/ Cake 25 covers, Lunch menu 165 covers, and Dinner menu 170 covers. The number of staff required for the breakfast menu is one responsible person, four levels 2/ level 3 staff. One assistant manager will be required to oversee the work. During the coffee session, one responsible person will be allocated and one level 2/ level 3. During the lunch menu, one responsible person will be allocated and 11 levels 2/ level 3 staff. During the dinner menu, one responsible person and 12 levels 2/ level 3 staff will be allocated. On Friday, only Olivia does not work. Ryan works from 15.00 to 01.00, while Ben works from 11.00 to 16.00 and 18.00 to 23.00. tiffany works from 7.00 to 17.00. Sarah works from 7.00 to 12.00 and 13.00 to 16.00. raj works from 12.00 to 15.00 and 18.00 to 23.00. jack works from 13.00 to 16.00 and 20.00 to 01.00. casual 14 works from 7.00 to 10.00 and 18.00 to 01.00. casual 15 works from 7.00 to 10.00, 12.00 to 15.00 and 18.00 to 24.00.

Saturday

On Saturday the restaurant opens from 7.00 AM to 1.00 PM. The restaurant covers will be spread as follows: Breakfast 90 covers, Lunch menu 160 covers, and Dinner menu 180 covers. The number of staff required for the breakfast menu is one responsible person, three levels 2/ level 3 staff. One assistant manager will be required to oversee the work. During the lunch menu, one responsible person will be allocated and 11 levels 2/ level 3 staff. During the dinner menu, one responsible person and 12 levels 2/ level 3 staff will be allocated. Ryan works from 15.300 to 01.00, while Ben takes a break. Tiffany works from 07.00 to 17.00. Sarah works from 7.00 to 11.00 and 12.00 to 14.00. Raj takes a break on Saturday. Olivia works from 11.00 to 16.00 and 18.00 to 21.00. Jack works from 13.00 to 15.00 and 21.00 to 01.00.

Sunday

On Sunday the restaurant opens from 7.00 AM to 12.00 PM. The restaurant covers will be spread as follows: Breakfast 220 covers, Lunch menu 175 covers, and Dinner menu 120 covers. The number of staff required for the breakfast menu is one responsible person, six levels 2/ level 3 staff. One assistant manager will be required to oversee the work. During the lunch menu, one responsible person will be allocated and 12 levels 2/ level 3 staff. During the dinner menu, one responsible person and eight levels 2/ level 3 staff will be allocated. Ryan takes a break on Sunday while Ben works from 7.00 to 17.00. tiffany works from 14.00 to 24.00 while Sarah takes a break. Raj works from 07.00 to 11.00 and 15.00 to 19.00. Olivia works from 7.00 to 12.00 and 13.00 to 16.00. Jack works from 12.00 to 15.00 and 19.00 to 24.00.

Roster

The roster provides that the manager can work for 50 hours maximum and a minimum of 38 hours. The reasonable overtime for managers is 12 hours because they are allowed to work 38 hours and a maximum of 50 hours. The roster is arranged such that each employee has breaks between the work session and that the employees have some days off-duty. Ryan, Ben, and Tiffany have the responsibility to work as managers, and the roster has been arranged such that they substitute each other during the normal working hours. Ryan does not on Wednesday and Monday; Ben does not work on Tuesday and Saturday, and Tiffany does not work on Monday and Thursday. Sarah, Raj, Olivia, and Jack work for 38 hours each on a daily basis. They get two days off each week. Only causal workers 13, 14, and 15 are allocated jobs during the week.

Name Monday Tuesday Wednesday Thursday Friday Saturday Sunday Total
Ryan RDO 13.00 – 20.00 7.00 – 12.00 13.00 – 20.00 7.00 – 12.00 07.00 – 12.00 RDO 50
Ben 7.00 – 12.00 13.00 – 20.00 RDO 13.00 – 20.00 RDO 13.00 – 20.00 7.00 – 12.00 50 (resonable overtime = 12hrs)
Tiffany 13.00 – 20.00 RDO 18.00 – 24.00 RDO 13.00 – 20.00 RDO 13.00 – 20.00 50
(resonable overtime=12 hrs)
Sarah RDO 10.00 – 18.00 18.00 – 24.00 18.00 – 24.00 7.00 – 12.00 19.00- 01.00 RDO 38
Raj 7.00 – 12.00 RDO 12.00 – 15.00 18.00 – 24.00 10.00 – 17.00 RDO 18.00 – 13.00 38
Olivia 12.00 – 18.00 12.00 – 18.00 7.00 – 01.00 RDO 18.00 – 01.00 7.00 – 10.00 RDO 38
Jack 18.00 – 24.00 12.00 – 20.00 RDO 7.00 – 12.00 12.00 – 18.00 12.00 – 16.00 RDO 38
Casual#1 7.00 – 12.00 RDO 12.00 – 18.00 7.00 – 12.00 12.00 – 18.00 RDO 12.00 – 18.00 34
Casual#2 RDO 7.00 – 12.00 7.00 – 12.00 7.00 – 12.00 RDO 7.00 – 12.00 7.00 – 12.00 35
Casual#3 18.00 – 24.00 RDO 18.00 – 24.00 18.00 – 24.00 18.00 – 13.00 18.00 – 01.00 RDO 30
Casual#4 RDO 12.00 – 18.00 18.00 – 24.00 RDO 12.00 – 18.00 12.00 – 18.00 10.00 – 12.00 34
Casual#5
Casual#6
Casual#7
Casual#8
Casual#9
Casual#10
Casual#11
Casual#12
Casual#13 18.00- 20.00 18.00- 24.00
Casual#14 20.00-24.00 7.00 – 12.00
Casual#15 12.00 – 18.00

Each staff has two days off in a week. The best staff have been allocated duties on Friday and Saturday, the busy days. Total labour costs = $57,143 x 30% = $17,142.90

Classification of levels and the wage costs

Level Classification Minimum weekly wage $ Minimum hourly wage $
Introductory 589 15.51
Level 1 Food and beverage attendant grade 1
Guest service grade 1 Kitchen attendant grade 1
606.40 15.96
Level 2 Clerical grade 1
Cook grade 1
Door person/security officer grade 1
Food and beverage attendant grade 2
Front office grade 1
Guest service grade 2
Kitchen attendant grade 2
Leisure attendant grade 1
Gardener grade 1
Storeperson grade 1
629.70 16.57
Level 3 Clerical grade 2
Cook grade 2
Food and beverage attendant grade 3
Fork – lift driver
Front office grade 2
Guest service grade 3
Handyperson
Kitchen attendant grade 3
Leisure attendant grade 2
Gardener grade 2
Storeperson grade 2
Timekeeper/security officer grade 2
651.30 17.14
Level 4 Clerical grade 3
Cook (tradesperson) grade 3
Food and beverage attendant (tradesperson) grade 4
Front office grade 3
Guest service grade 4
Leisure attendant grade 3
Gardener grade 3 (tradesperson)
Storeperson grade 3
686.20 18.06
Level 5 Clerical supervisor
Cook (tradesperson) grade 4
Food and beverage supervisor
Front office supervisor
Guest service supervisor
Gardener grade 4 (tradesperson)
729.30 19.19

Variable costs

Staff Gross Wages Superannuation @9% of gross wages Work-cover @ 3% of gross wages Other On-Costs estimated at 10% of gross wages
Cleaning 1000 90 30 100
Kitchen 5000 450 150 500
Manager Ryan 50 hrs 785.71 70.71 23.57 78.57
Assistant Manager Ben 50 hrs 1125 101.25 33.75 11.25
Assistant Manager Tiffany 50hors 1125 101.25 33.75 11.25
Sarah 657.60 59.18 19.73 6.58
Raj 657.60 59.18 19.73 6.58
Olivia 582.20 52.40 17.47 5.82
Jack 582.20 52.40 17.47 5.82
Total 11,517.31 1,036.37 345.47 725.87

Total costs $13,624.55

Variable costs

Level Hourly rate Total hrs worked for the week Junior % Total Cost
Level 1 $21.27 50 hrs n/a $1,063.50
Level 2 $22.26 50 hrs n/a $1,113.00
Level 3 (Jnr 85%) $22.98 (adult rate) 38 hrs $19.53 $873.24
Level 3 (Jnr 85%) $22.98 (adult rate) 38 hrs $19.53 $873.24
Total $3,922.98

On-Costs

Level Gross Wages Superannuation @9% of gross wages Work Cover @ 3% of gross wages Other On-Costs @ 2% of gross wages
Level 3 $1,063.50 $95.72 $31.91 $21.27
Level 5 $1,113.00 $100.17 $33.39 $22.26
Level 5 $873.24 $78.59 $26.20 $17.46
Total $3,049.79 $274.48 $91.5 $60.99

Variable labour costs $3,049.79

Analysis of Results

Sales Labour cost Labour cost %
week Budgeted Actual %of budget Budgeted Actual % of budget budgeted Actual
1 $6,550 $6,400 98% $2000 $1,867 93.35% 30% 29%
2 $6,850 $7,000 102% $2000 $2,158 107.90% 30% 31%
3 $6,000 $6,000 100% $2000 $1,800 90% 30% 32%
4 $8,100 $7,600 94% $2000 $2,430 121.50% 30% 32%
Total $27,500 $27,000 98% $8000 $8,251 103.13% 30% 31%

The expected costs were $20,000, the actual labour costs was $17,142.90. The variable costs were $2,549.22. The total sum of the actual costs is $21,065.88. This shows that there is a deviation of $1,065.88. This shows that the strategy of implementing the reduction of costs to 30% needs to be revised.

Roster Evaluation

The requests provided by the staff have been met after developing the roster. This has been achieved by the successful allocation of time for the casual workers (Ojugo, 2009). Causal staff one was not allocated for work on Tuesday, casual worker two was allocated morning hours slots, and casual worker three was allocated slots for evening slots. It was possible to reduce the working hours for Ryan from 70 to 50 hours per week without affecting his performance and the performance of other staff members. The roster provided above shows that the staff will have to work extra hours for extra pay. On the other hand, Ryan will have reduced his working hours; this will allow him to supervise the restaurant more effectively. In addition, he will have fewer responsibilities, and his subordinates will have to bear more responsibilities (Dittmar & Griffin, 2008). The roster takes this design because there is a need for the manager, Ryan, to have more resting time. The roster also aims at increasing responsibilities to subordinates in the organization. Lastly, Ryan wants to improve the efficiency of the company by reducing labor costs while increasing the output of all employees.

The objective of meeting the 30% TLC has been achieved. However, the variable costs deviate slightly by $1,065.88. The objective to achieve a time reduction of time that Ryan works in a week from 70 hours to 50 hours has been achieved. This strategy will help Ryan work less at the restaurant, and this will help improve his performance. The impact of this strategy is that the two assistant managers, Ben and Tiffany, will have more managerial obligations. Initially, Ben and Tiffany were working for 40 years each under the previous strategy. The new strategy will increase the number of hours allocated to Ben and Tiffany. This requires that Ryan should delegate more duties to the assistant managers. Previously, the total labor costs operate at 35%, and the new roster will help reduce the restaurant by reducing the variable costs to 30%. The new roster will also improve the efficiency of the staff because they will be required to provide more labor hours to produce more outputs. The new roster will also help accommodate the special needs of the staff. The overall objective of making more profits will be achieved because the roster is reliable (Miller, Dopson, Hayes, 2005).

Developing the roster will also enable the management to design appropriate payslips. With the new strategies adopted by the company, there are changes in the wages of employees, and this makes it necessary to adopt another design of payslips for the staff (Honan, 2010). It is also important to note that the flexibility of the workplace is increased because employees can work depending on their schedules. The management can shift the duties of various employees to accommodate their needs. Appropriate communication processes will be possible with the new roster. All employees can convey their ideas to the manager or assistant manager because there will always a responsible person at all sessions of the roster. The roster has been established such that the manager and/ or the assistant managers will have alternating duties to ensure they address any issues that may affect the employees (Marvel Internet Group, 2010).

With the new roster, paying taxes will be improved because all the details concerning the wages of employees will be compiled together. It is possible to compute the wages earned by the employees of the company. The restaurant will provide better accounts of its financial operations because the roster shows the costs, incomes, and sales revenue made by the company (Australian Taxation Office, 2011). Therefore, the new rostering process will help the restaurant improve in all its activities. This means that the management will improve the profits, efficiency of employees, and the general operations of the business. Delegation of duties will also be possible because there will be a well laid down procedure of conducting activities within the restaurant (Cole, 2005).

Reference list

Australian Taxation Office, 2011. Annual Report 2010-2011. Web.

Cole, K. 2005. Management – Theory and Practice, 3rd Ed., Pearson Education Australia.

Dittmar, P. R. & Griffin, G. G., 2008. Principles of Food, Beverage and Labour Cost Controls, 5th ed. VNR, New York, USA.

Honan, J. 2010. Welcome to the portal for Payslip printing in Australia. Web.

Marvel Internet Group, 2010. Hospitality Rostering Guide. Web.

Miller, J., Dopson, L., & Hayes, D., 2005. Food & Beverage Cost Control, 3rd Edition, John Wiley & Sons, USA.

Ojugo, C. 2009. Practical Food and Beverage Cost Control. New York: Cengage Learning.