How To Retain Your Restaurant Employees

When you want to save on operational expenses, one area of expense that can be effectively reduced is the cost of recruiting and training employees. You may not realize how expensive it can be to find a replacement employee. In addition to the cost of placing a recruitment ad, spending time reviewing resumes, interviewing prospective employees and outfitting the person in necessary uniforms and name tags, you must take time to set up financial records and payroll records.

Once the person is on the job, there is time that must be set aside for orientation and training. These tasks could be done by the manager or owner. Alternatively, another employee must take time to explain processes and procedures. This tends to reduce the effectiveness and efficiency of the employee who is doing the training. Some restaurants provide an employee manual to help in the training.

All of these training and orientation measures cost money which is often never recouped in later efficiencies. You would be far better off to put in place measures that retain trained and experienced employees wherever possible. You might make the pay level somewhat higher than other similar employers in the area. You could put training money into courses that allow employees to move up within your organization.

The retention of restaurant employees doesn't necessarily have to cost a log of money. Recognize good job performance with perks such as a parking place with a sign to honor the "Employee of the Month". When a person is praised for accomplishments on the job, it is a boost to the morale of everyone. Encourage praise cards from customers and share them with the employees.

Employee safety and health should always be of primary concern. In a restaurant, it is easy for food spills to make slip-and-fall accidents too common. Awareness of one's surroundings will help protect you from losing an employee to an accident that could have been prevented. Make sure that each employee has food handling certification and that proper lifting techniques are known and applied.

You can retain your employees by identifying common issues that can arise in a dining establishment and ensuring that the worker knows what is expected in each instance. These events could include things like choking, and allergic reactions to food items. When you own or operate an establishment that recognizes the importance of your staff in ensuring the success of the business, you will be encouraged to make sure employees are valued for their contributions.

What You Should Know About Leasing

You may be reviewing whether or not to purchase restaurant furniture and fixtures or to lease them. This is a decision that can mean the difference between a profitable bottom line or one that is less so. Before making the choice between buying or leasing, here are some suggestions to review, so you have a better understanding of the topic

Review the lease contract with care. You shouldn't assume that anything is included in the contract unless you have seen it. Better yet, have your business attorney and your tax accounting review the contract. In most instances, negotiation to get the exact terms you need is beneficial. The lease should be set up in a way that your bookkeeper and your attorney each approve.

There are advantages of choosing leasing over purchasing the equipment and fixtures you need. For example, the cost of monthly payments tends to be less than the cost of purchasing using a payment plan. When you have limited financial resources, your cash flow is improved when you lease rather than pay your nest egg out for purchased fixtures.

When you use leased equipment, you can probably arrange a clause so that you always have the latest model or style in your facility. You will also want to ensure that maintenance for mechanical or electronic equipment is included within the terms of the contract. This feature is an advantage you get when you lease rather than buy. However, you will need to ensure that the contract speaks to the topic.

Leasing the restaurant equipment you need does have a disadvantage or two. You ordinarily don't own the equipment. If should go out of business before the lease term is completed, chances are that you will have to pay a penalty, which could be substantial. Because the equipment is not owned, it may have have tax implications. For example you may lose the tax benefit of depreciation, depending upon how your accounting system is designed.

When you are deciding between purchased and leased equipment, you will want to consider price, both for the original purchase, the monthly payment amounts and the tax-adjusted amount if that apply. It's important to be sure that your lease agreement is clear, easy to read, and doesn't contain any unpleasant surprises. Using leased equipment may allow you to keep the latest model or style in your facility. You will also have the option of including the maintenance in the cost of the lease.