What You Should Know About Starting A Restaurant Business
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What You Should Know About Starting a Restaurant Business
Overview
Starting a restaurant involves overcoming several challenges, one of the most significant being a shortage of qualified labor. As the food service industry expands, the competition for skilled workers intensifies.
Building a Strong Human Resource Program
Creating a comprehensive human resources strategy is essential. Begin by drafting detailed job descriptions for every position. Clearly define duties, responsibilities, and any specific skills or credentials needed.
Establishing Competitive Pay
Before launching your restaurant, research local wage standards for various roles in the industry. Offering slightly above-average wages can serve as an incentive to attract and retain talented employees. Set a clear pay scale, including minimum and maximum rates, and outline raise schedules.
Application Process
Require all job applicants to complete an application form, even if they provide a resume. This ensures you have a signed record verifying the accuracy of their information.
Tips for Hiring and Retaining Quality Staff
- Conduct Thorough Interviews: Screen candidates meticulously to ensure they understand and can meet job expectations. Consider hiring a Human Resource consultant to assist with background checks if necessary.
- Comply with Labor Laws: Familiarize yourself with wage regulations and child labor laws by consulting your state’s Department of Labor.
- Manage Tips Correctly: Report tips using the appropriate IRS forms, and seek guidance from the IRS as needed.
- Invest in Training: Proper training boosts employee confidence and productivity, reducing turnover. The National Restaurant Association can assist in developing effective training programs.
Staff Roles and Costs
Understand the various roles within your restaurant, such as Manager, Assistant Manager, Cook, Chef, Server, Busboy, Dishwasher, Host, and Bartender. Initially, employees might need to take on multiple roles until the full team is established. Aim for payroll costs to represent 24% to 35% of total sales.
Key Positions
- Manager: This is the most crucial role. Look for candidates with experience managing similar restaurants in the area. They should possess strong leadership skills and a fair but firm approach to supervising. Offer competitive salaries ranging from $30,000 to $40,000 annually, plus bonuses, to attract and retain top candidates.
- Chefs and Cooks: Ideally, hire two full-time and one part-time cook. Test their culinary skills during the interview process. Chefs typically earn $660 to $700 weekly, while experienced cooks earn $400 to $500 weekly. Part-time cooks may be paid hourly.
- Servers: Select servers who can make a strong impression and excel under pressure. They interact most with customers and should maintain a positive attitude. Servers usually earn more than minimum wage through tips, so ensure they are energetic and customer-friendly.
By addressing these critical areas, you can set your restaurant business up for success, attracting a skilled team and fostering a productive, positive work environment.
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