Predicting the future of restaurant management bonus structures - And how they will improve retention.

Read time - a quick 3 minutes

It was early 2020, and restaurant managers and chefs were all running around focused on the same things.

-> Hit my labor cost target

-> Hit my COGS target

-> Hit my prime cost target

-> Hit my sales target

And if someone quits... Replace them as soon as possible with someone new.

Accomplish all of these things and there is a good chance you got paid.(or at least qualified to get paid...)

Now if you have been in a restaurant management position at any point in your career, this probably sounds familiar. (And it still might...)

But things changed quickly in March 2020. All of a sudden labor cost wasn't being looked at the same(because of subsidy's or no staff), COGS were changing (due to supply chain and product changes), and in some cases, sales weren't even a thing.

Find out more about how to look at the old school restaurant labor model differently here.

Fast forward to February 2023 and things are looking very different.

Pricing has changed, wages have changed, revenue has changed(some for the better, and some not) and the entire model of a restaurant looks different.

But one thing that hasn't changed, is how management and chefs are measured on their performance... which impacts how they get paid.

And sometimes if they stay or not.

A few questions to consider.

1. Is a manager effective if sales are up only due to pricing increases?
2. Is a manager failing if labor % is climbing due to wage increases?
3. Should a manager have to work harder, cut harder, and face burnout in order to make their bonus just because the model has changed?

In many cases, the only way to achieve current labor cost % targets is to run short staffed -> On Purpose.

If you think this is as crazy as I do, check out how we deal with it differently, or just text me -> 6047898991

So, based on all of this change here is how I see the future of restaurant management and chef bonus programs looking.

1. Achieve customer count targets - Because covers lead to sales
2. Achieve business productivity targets - Because productivity beats rising cost
3. Achieve employee workload targets - Because proper workload improves retention
4. Achieve employee retention targets - Because this is a filter for decisions

Do all of these things...

And management should get rewarded.

Oh, and if you are unsure about how to measure productivity or workload, just email me. Its easier. [email protected] - > Use the subject "workload management"

The truth is, any new reward and recognition programs need to be more people centric.

Because we want them to love their jobs, and we want them to stick around.

But the new models also need to factor in that the business model has changed.

So we have to too.

I have lots of examples of this exact scenario in restaurant groups all over North America to share. Hit me up and I am happy to pass on some ideas.

Until next Monday.

Jim

Ps, whenever you are ready here are a few other ways I help restaurateurs every day.

1. If you are looking for ways to negate rising labor costs, because wages are climbing and turnover is expensive, then I would recommend starting with something simple ->?This is definitely for you
2. If you are a restaurant operator or owner who realizes that increased productivity, 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?Jim Taylor or [email protected]
3. If you are a service provider to the restaurant industry and you are looking to partner, or build your business in 2023, there is a spot for you right?here.