Don’t Let Poor Cash Handling Hurt Your Success – Part 2

By David Scott Peters

www.therestaurantexpert.com

In my last post I addressed some samples of classic cash handling errors we see in restaurants all the time. As a reminder, it is your responsibility to make sure ALL of your money makes it into the bank on a daily basis. You must eliminate poor cash handling procedures, eliminate the majority of ways your cash can be stolen and avoid costly fines through proper systems.

Believe it or not, I have systems for cash controls! Follow these procedures and take your success — along with your cash — to the bank.

ACCOUNTING PROCEDURES

Server Checkout

  1. Make sure all checks are closed.
  2. Count servers cash, run tape (if needed), date, +/-$, server’s name.
  3. Cash must match cash due.
  4. Match credit card slips report with server report. If they do not match, look at each credit card slip against the POS receipts to find the problem.
  5. Staple credit card slips to server report. Put server reports and credit card slips in two separate piles.

Helpful hints:

  • Money should be turned in faced.
  • Credit card slips in descending order.
  • Change should be less than one dollar.
  • You should receive larger bills, not $35 in ones.
  • Servers will always be even or over. If they give you a quarter and they were only required to give 24 cents, you do not give change, you are not a bank. Send them to the bar if they want change.
  • If there are COMPS, look for coupons, signed slips or anything else to confirm them.

Bar Checkout

  1. Make sure all checks are closed.
  2. Count servers cash, run tape (if needed), date, +/-$, server’s name.
  3. Clear and continue tape.
  4. Cash must match cash due.
  5. Start a tape, adding all server reports (cash due), subtracting any paid outs and total.
  6. Clear and continue tape.
  7. Count drawer by compartments.
  8. Count the bar drawer back to $300.00.

When counting the last drawer for the day, purchase all of the loose change you can from the daily deposit bag. The goal is to finish the day with less than one dollar in loose change in the bank deposit.

Helpful hints:

  • Bartenders should face their money before they turn their drawer in.
  • Bartenders should bundle and wrap money:
  • pennies by 50 cents
  • nickels by $2.00
  • dimes by $5.00
  • quarters by $10.00
  • ones by $50.00 – 50 bills
  • fives by $100.00 – 20 bills
  • tens by $500.00 – 50 bills
  • twenties by $1000.00 – 50 bills

Counting the Bar Drawer Back to $300

  1. Look at tape with the drawer total.
  2. Take out change (If tape total is $689.52, take out 52 cents.) Place the change removed on the desk in front of the compartment.
  3. Re-run tape subtracting change you took out. If done correctly the change will equal an even dollar amount ($.00).
  4. Pull all the bills out of the drawer.
  5. Put in three stacks of ones ($150.00). Add 0 to 4 additional ones to have a drawer total to that point to have a 0 or 5 in the ones positions (i.e., change of $13.00, add three stacks and two ones ($152.00) to have a total of $165.00 in the drawer to that point) and add to tape.
  6. Put in $100.00 in fives and additional fives, to get to an even $300.00.
  7. Total tape and rip off.
  8. Date, time, initial and put in drawer.

Counting Deposit

  1. Try to have most of the change equal less than a dollar.
  2. Count $1s and $5s, make bundles.
  3. Count master, replacing bundles for loose money.
  4. Count deposit, change through $100s, run tape.
  5. Add checks.
  6. Re-total.

Master Bank

Master bank should equal $1,100.00

  • $400.00 in fives.
  • $350.00 in ones.
  • $30.00 in quarters.
  • $15.00 in dimes.
  • $4.00 in nickels.
  • $1.00 in pennies.

Run tape, initial and date.

The Master bank should be verified at least twice a day. It should always be verified before you count your daily deposit.

Deposit Slip

  • Fill out the deposit slip amounts, i.e., currency, coins, checks.
  • Fill out the number of checks in the appropriate box.
  • Fill in check numbers.
  • Date with the date of the deposit.
  • Put the deposit slip, tape and cash in a deposit bag. Zip and put it in the safe.

Deposits are taken to the bank the next day and change is purchased to balance the master bank to $1,100.00

NIGHTLY ACCOUNTING CLOSING PROCEDURES

  1. Do all employee, reverse happy hour or any other comps for servers and bar.
  2. Make sure all checks are closed.
  3. Run an open check/table report.
  4. Run a flash revenue report.
  5. Count out all servers and bar.
  6. Run a timekeeping report to verify all staff has punched out. Adjust times if needed.

OPENING ACCOUNTING PROCEDURES

Preparing Daily Envelope

  1. Keep transaction report with the confirmation number in an envelope along with credit card slips, (signed copies).
  2. Include paid outs, entire house report, cash out report, credit card
  3. Confirmation sheet – label with yesterday’s date and day of week
  4. File

It’s your choice

I know that it is ultimately your choice, it’s your cash and it’s your business. But if it were me, I would follow our suggested cash handling systems or your own standard trainable systems and make shortages a disciplinary issue that could ultimately cost people their job.

When you make it a responsibility to handle cash properly and it’s tied to their employment, you create a culture where counting money accurately is not just an expectation, it’s the rule.

And lastly, when you do all of these things and your bank deposit is more than $5 off, you know you have a problem and it could just be with a manager stealing or just not doing their job. Either way, you will have more control of your business and have money in the bank to pay your bills.

David Scott Peters TheRestaurantExpert (1)David Scott Peters is a restaurant expert, speaker, coach and trainer for independent restaurant owners. He is the developer of SMART Systems Pro, an online restaurant management software program helping the independent restaurant owner remain competitive and profitable in an industry boxed in by the big chain restaurants. He is best known as the SMART Systems guy who can walk into any restaurant and find $10,000 in undiscovered cash before he hits the back door… Guaranteed! Learn more at www.therestaurantexpert.com/rdspos.

 

How to Get Your Message Across to Restaurant Managers

By David Scott Peters

www.therestaurantexpert.com

In Last week’s post I covered the pitfalls of not communicating with your management team and offered up a solution to avoid a failure to communicate. The solution is to have weekly managers meetings.

To begin having effective managers meetings, follow this four-step process that prepares everyone for this new activity in the routine.

Step 1

Step one is the planning meeting. This is the step where you look at last week’s priorities and goals and audit where they are. Did they get accomplished, did you hit your goals or were there things that happened that delayed results? Take the time to really look at things with a detailed eye.

Next, create your list of goals for you and your team for the upcoming week. Be specific and clear in the list of what you want done, how you want it done, how well you want it done and more importantly by when. Without deadlines nothing would get done.

Step one applies to every restaurant owner whether you have a partner or not. The only difference is when you have a partner, this step becomes even more important.

Too often in independent restaurants, partners don’t communicate. As a result, they send mixed signals to their employees and managers because they ask them to do two completely opposite things or get the same thing done two completely different ways. Or worse, they do this directly in front the employee resulting in an argument/fight between the partners.

This is the quickest way to get your employees to tune you out and then do whatever they want. The employee knows that they can just point fingers to the other partner and there will be no recourse.

If you have a partner this is the most important step because it puts you both on the same page, allowing you to all communicate the same game plan from the same playbook.

Even if you don’t have a partner, you can create a similar challenge when you continue to change your mind on how you want something done, telling one manager and then getting mad at another because they aren’t doing it the new way, even though they never got the message.

Step 2

Meet with your general manager and communicate the goals for the next week. Gather your general manager’s priorities that need to be addressed and added to the list. This is your opportunity to make sure your general manager is on the same page as you. You are also setting the general manager up for success to conduct an effective and efficient managers meeting.

Step 3

Step three is the agenda. Now that your general manager has your list of goals for the week, he or she will create an agenda for the meeting. The agenda should include such things as a start time and a finish time and topics to be addressed.

Before the meeting, clearly communicate what ALL of the other managers will need to bring to the meeting. If any of the other managers have something they want to add to the agenda, they need to get it to the general manager at least two days before the managers meeting.

Please note that your manager meeting should not be scheduled for anything more than 90 minutes. Anything longer becomes counterproductive.

Step 4

Step four is conducting the actual meeting. One of the biggest questions I get all the time is, “I’m the owner, shouldn’t I conduct the meeting?” The short answer is NO, unless you fulfill the general manager role as well. Your general manager is supposed to execute the plan. He or she is going to be held accountable for these goals, so you need to put them in a leadership role and demonstrate that the general manager is the other managers’ direct supervisor.

When conducting the meeting, the general manager will do about 25 percent to no more than 50 percent of the talking. This is because your managers have come to the meetings knowing what they are responsible for. They will have brought the correct information from cost of goods sold and labor costs to employee issues to project updates. They will present to the group. You want every manager engaged and participating in the meeting.

Be sure to stick to this agenda. If and when a NEW topic comes up, make sure you determine if it should be tabled until the next meeting or if you need to set up a sidebar meeting after the manager meeting. Do not add it on the fly. When you don’t control the topics, start and stop time, managers meetings go forever. Anything longer than 90 minutes creates an environment where your mangers get frustrated because they feel you don’t value their time and quite frankly, they start tuning you out.

Timeline

What day you choose for your manager meeting is up to you. It can be determined based on the day all managers would be in the building anyway, or what day inconveniences the fewest managers.

An example might look like this:

Owners meet on Tuesday allowing the general manager to complete the budget variance reports for the past week so the owners have the numbers.

On Wednesday the owners and general manager meet to get on the same page and set the agenda.

On Thursday the general manager conducts the managers meeting.

Conclusion

If you’re tired of things not getting done, tired of not making the money your restaurant should be making and/or tired of being frustrated on a daily basis with everyone’s performance — owner or manager — then you’ll want to follow the four simple steps in this article. Just remember it’s not only about being organized, it’s also about being consistent. This comes from conducting the managers meeting weekly.

David Scott Peters TheRestaurantExpert (1)David Scott Peters is a restaurant expert, speaker, coach and trainer for independent restaurant owners. He is the developer of SMART Systems Pro, an online restaurant management software program helping the independent restaurant owner remain competitive and profitable in an industry boxed in by the big chain restaurants. He is best known as the SMART Systems guy who can walk into any restaurant and find $10,000 in undiscovered cash before he hits the back door… Guaranteed! Learn more at www.therestaurantexpert.com/rdspos.

 

How to Hit a Home Run in Labor Controls

By David Scott Peters

www.therestaurantexpert.com

How do you make money in the restaurant business? The reality is it’s the small things that add up, such as reducing the cost of cheese by a nickel a pound, or reducing the number of garbage pickups a month by one. But every so often, with the bases loaded, you bring up your cleanup hitter to clear the bases with one big swing, known in baseball as the “grand slam.” If that cleanup hitter is a system, then with that one system you’ll reap huge savings.

This article is about choosing the system that is your cleanup hitter. It’s the one batter who can hit a restaurant profits grand slam for almost any restaurant. You simply need to know how to send him in.

Start with the right equipment

Using the right equipment or tools is how you control your labor expenses! And controlling them starts with a labor budget and labor budgeting system.

First, you need to know your target labor costs. That starts with knowing what your prime cost should be. That’s the sum of your total cost of goods sold and your total labor costs. Prime cost for a full-service restaurant needs to be 55 percent, no matter what type of restaurant you are. Please note that it doesn’t matter where each of the individual expenses are, just so that together they don’t exceed your prime cost target.

You need a good warm up

Before you can hit the big one, you have to be warmed up. To warm up, you need to calculate what your labor expenses were last week. This will give you some key numbers to ensure you hit your projected labor budget for next week. Below is an example of what you need to calculate.

DSP 1

With this information, you’ll be able to tell each of your managers, by department, how many hours they have to schedule and how much money they have to spend (not including taxes, benefits and insurance.)

Swinging the bat

Now that you know what your average hourly wages are by department, average hourly wage for all line employees and the percentage of hours by department, you can now follow my step-by-step system to ensure you hit your target labor costs and ultimately make more money!

1)      You need to know how much you have to spend on labor next week. To do this you need two pieces of information: a) your projected sales for the week; and b) your target labor cost percentage, excluding taxes, benefits and insurance.

2)     How much money do you have to spend, minus management salaries? Since management salaries are a fixed expense, simply subtract their salaries from your total dollars available.

3)      How many hours do you have available to schedule for your line employees throughout your entire restaurant? Take your average hourly wage for the entire restaurant and divide it by the total dollars you have to spend for all of your line employees.

DSP 2

 

 

 

 

 

4)      How many hours does each department get? You were probably asking yourself earlier, “Why do I need to know the percentage of hours each department used last week?” By multiplying those percentages by the total number of hours available for next week, you quickly determine how many hours each department gets.

5)      Last but not least, based on average hourly wages by department you’ll be able to allocate every penny each department gets and stay within budget… guaranteed!

Hitting the home run

You should be saying to yourself, “WOW! That’s really easy!” And that’s because it is. Your final step is to give each manager the number of hours they have to schedule for next week and how much money they can spend. Then have them write their department schedules. The attitude here is to schedule to stay within budget, not just to fill shifts.

By following my step-by-step labor budgeting system… you’re in position to hit your very own restaurant profits grand slam!

 

 

David Scott Peters TheRestaurantExpert (1)David Scott Peters is a restaurant expert, speaker, coach and trainer for independent restaurant owners. He is the developer of SMART Systems Pro, an online restaurant management software program helping the independent restaurant owner remain competitive and profitable in an industry boxed in by the big chain restaurants. He is best known as the SMART Systems guy who can walk into any restaurant and find $10,000 in undiscovered cash before he hits the back door… Guaranteed! Learn more at www.TheRestaurantExpert.com.

 

13 Steps to a Fool-Proof Schedule

By David Scott Peters

www.therestaurantexpert.com

Here are 13 steps I developed to write a fool-proof schedule to make it fun and effective. With this system you and your managers can write great schedules that satisfy the needs of the business and of the staff.

1. Staff Order
When you list your staff members on the schedule, list them in the following order:
A. Lead server
B. Server trainer
C. Seniority

Put your key people — such as your leads and trainers — first as a sign of respect and responsibility. Then list your servers by seniority. However, this order has nothing to do with who gets the best shifts.

2. The Busiest Times Require Your Best People
Schedule your strongest people for the busiest times.

3. Offer Opportunities to Make Money to Everyone
Make sure your new, less senior staff get at least one money-making shift on the schedule each week to keep them happy and to give them an opportunity to learn.

4. Everyone Should Know the Day Shift
Have all staff work at least one day shift. Doing this opens up those money-making shifts for the newer members of the team and allows for a stronger lunch shift for stronger sales and a better customer experience.

5. The Backward Scheduling Priority
A common mistake a manager makes when scheduling is to start writing a schedule on Monday and finishing with Sunday. From here on, number your days, 1 being the busiest to 7 being the slowest. Then start scheduling backward, from 1 to 7 to get your strongest people in your busiest shifts.

6. Give Them Personal Time
Schedule two days off in a row whenever possible.

7. Close/Opens, the Quickest Way to Mediocrity
Stay away from scheduling close/opens, when a staff member closes the night before and opens the next morning. It’s important for morale and accountability.

8. What to Do When You Are Over Staffed
If you have more staff available than shifts to fill, give shifts to your full-timers first.

9. Staff Up, Not Down
Always have two more full time equivalents (FTEs) than you need. An FTE is whatever number of people it takes to equal one full-time person.

10. Remember a Request Is a Request
Scheduling requests are just that: requests. The needs of the business must come first. Make it clear to your staff you reserve the right to say no. But try to always grant those requests and fill the hole with your extra FTE.

11. Management Is Required
Any schedule changes must be initialed by a manager to avoid overtime and to make sure shifts are covered properly.

12. Post Quickly and Consistently
Accept scheduling requests until Tuesday night, write the schedule on Wednesday or Thursday, and post it by Thursday at 4 p.m. Make few exceptions. And in the case of holidays, plan ahead.

13. Use a Scheduling Key
When filling out a schedule, use a staffing key that includes every employee and their schedule requirements. Place an “X” on the days people cannot work, place an “R” in the days people have requested not to work and place a “V” in the days people have requested off for vacation. Then start scheduling shifts.

Following these 13 steps will save you time and ease your stress. It will also keep employee morale high and productivity up.

David Scott Peters TheRestaurantExpert (1)David Scott Peters is a restaurant expert, speaker, coach and trainer for independent restaurant owners. He is the developer of SMART Systems Pro, an online restaurant management software program helping the independent restaurant owner remain competitive and profitable in an industry boxed in by the big chain restaurants. He is best known as the SMART Systems guy who can walk into any restaurant and find $10,000 in undiscovered cash before he hits the back door… Guaranteed! Learn more at www.TheRestaurantExpert.com.