Back-of-House Labor System Requirements for Foodservice Operations

My last couple of posts discussed the importance of having management guidelines to help create a baseline for potential labor and process re-engineering efforts and determine accurate labor costs of existing and promotional programs, among others.  In this post I will provide some thoughts and observations on the basic integration steps to follow and requirements to look for in a back-of-house computer or internet based labor management system.

It is important for foodservice operators to create the right set of variables and drivers for input into the labor management system.  Leveraging the methodology described in previous labor-related blog posts, it is critical to be able to translate this detailed information into an input the back-of-house system understands.  This is not as easy as it may appear, and is the only way to ensure the correct output and generation of proper labor guidelines.  The old adage of “garbage in, garbage out” comes to mind as I recall my experiences with computer programming many years back.

Software vendors sell the functional aspects of their systems, but may not be as well-versed in creating the correct inputs to make sure the system generates the necessary data.  My recommendation is to procure outside help from a reputable organization to develop the proper data entry points. Such an organization must have a “time and motion” and industrial engineering approach and focus to ensure optimal development of the inputs.
As part of the input integration phase, foodservice operators should validate the system prior to testing it at the unit level.  This step ensures the output aligns with management’s expectations, across all volume levels, and that the results generated provide the restaurants with the right labor levels and guidelines.

Following integration and validation, foodservice operators should enter an in-store testing phase.  During this step foodservice operators should test the labor guidelines against actual results. Specifically, they should evaluate the results against such key metrics as product quality and customer service.

Other important aspects to look for in back-of-house labor management systems include:
• Forecasting capability
• Multiple drivers or guides to ensure sensitivity of the guidelines
• Capability for managers to easily forecast demand, create schedules and evaluate performance
• Flexibility to easily integrate new menu items and update labor allowances periodically
• Ability to accommodate operational differences between units
• Ability to plan and adjust labor based on the actual demand during the day (vs. the plan created)
• Evaluation of performance; planned labor and actual labor
• Specific reports that support managing the business
• Capability to be used by the full system, including  company-owned and franchised stores

In many instances, the corporate office of a highly franchised system will spend time and money in developing an internal labor management system, but may have little luck getting some franchisees to use the system. One option that improves the practicality and ease of application is the use of web-based systems.
To summarize, an optimum implementation of a labor management system should involve:

• Finding the right system (drivers, reports, controls)
• Translation of the detailed labor data into system inputs (time and task based)
• Validating the outputs (prior to testing)
• Testing and finalizing the system
• System-wide applicability and implementation