Introducing "The Productivity Filter" and why every decision in a restaurant should go through it.

A quick 4 minute read today.

The first thing I want to tell you is that productivity measurement is the answer to essentially all of the challenges that the restaurant industry faces.

And I am happy to discuss this with anyone who is interested in the concept. DM me Jim Taylor and let's chat!

Now there are several ways to measure how productive a restaurant is, and none of them are wrong.

However, none of them are as powerful as what I am about to tell you.

At Benchmark Sixty we believe that cover count is the single most important piece of information in a restaurant. We believe that for several reasons, but most importantly that cover count is the #1 driver of overall business productivity... The second part being employee hours.

The ratio that exists between cover count and employee hours is the most powerful metric in the restaurant business and it will tell you more about what is happening in the business than any other productivity metric.

Now think about any decision that is made in the restaurant, from hours of operation to items on the menu, and from seasonal change to training practices.

All of those decisions affect one of the two levers I mentioned above.

They all impact either employee hours, cover count, or both.

Now here is a rule of thumb -> As long as your cover count grows faster than your employee hours, your labor cost % will always be in line... And if your cover count is declining, as long as your employee hours decline at a faster rate, again your labor cost % will stay in line.

Learn more about this concept HERE

I always recommend using the Productivity Filter to help operators make strong decisions in any area of the business, and if you can accurately estimate what a new strategy will do to either cover count or employee hours, you will be able to determine what the strategy will do to the business model.

But there are two other pieces of information that are required in order to paint a full picture -> Average wage + Average spend

If you know the cover count, average wage, average spend, and employee hours in your restaurant, you're set. You will be able to forecast and control labor costs, create improved consistency for guests, and manage employee workload better in order to improve retention. Learn more about how employee workload is affecting the business model HERE

As you can see in the model above, cover count, employee hours, and "Productivity Score" are all captured.

You can also see that as we work to improve the "Productivity Score" , the labor cost % improves.

This concept can be used to negate rising cost, improve profit results, forecast future results, and even give operations teams specific, targeted direction in order to improve profitability.

All they need to do is improve the "Productivity Score"

This filter can be used to find answers to literally every problem that exists in the restaurant industry, and although we don't have time here, today to discuss them all, I am always available.

Ps. I mentioned employee workload a second ago... So if you are looking for ways to improve the task portion of workload for your team, and to improve process at the same time, I would encourage you to have a look at?Notch . They are literally shaving multiple hours a week off of management routines, allowing them to better focus on the most important things in the business more. They are changing the industry through improved invoicing, ordering and accounts payable processes.

This also helps to improve the "Productivity Score" as well.

Until next week,

Jim

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Oh and one last thought...

Whenever you are ready here are a few other ways I help restaurateurs every day.

• If you are a restaurant operator or owner who realizes that increased productivity, improved employee workload, and lower turnover are the only responsible ways to succeed in our industry these days... I've got you covered. Let's connect for a discussion. DM me at?Jim Taylor , email me [email protected] or you can even text me at 6047898991.

(Don't worry, I won't try to sell you anything.)

• If you are a consultant, or service provider to the restaurant industry and you are wondering how to create opportunity, looking to build your business in 2023, or find it to be lonely as a solo-preneur there is a spot for you right?here ?and I would love to meet you.