by Abby Henson | Nov 13, 2023 | Convenience Stores
Leading rota, people and payroll tool provider S4labour, has shared some tips to help independent convenience and forecourt operators best manage their labour throughout the busy holiday season.
It becomes increasingly difficult to balance the needs of your shoppers and your team as well as thinking about profits and compliance when experiencing these different patterns of trade. So, for independent retailers, it is well worth investing in tools that can help them do the work efficiently, cost-effectively and without stress.
Some of the challenges facing retailers will include requests for time off or additional hours, as well as scheduling according to big events that are likely to see people get together, like summer sporting events, barbecues and local fetes.
Garry Craft, S4labour, Managing Director Convenience Stores, says: “Walking the line of having enough staff whilst not overspending on a labour budget can be difficult.
The first step for successful labour management is to use tools and insights that give visibility of historic sales data and labour spending. Looking at week-by-week and day-by-day labour spending will give more insight into how retailers should be planning rotas, compared to just looking at quarterly totals.”
The rota, people and payroll tool provider also state that having this visibility of labour spend, particularly before it is spent, will avoid unexpected costs for retailers.
Craft continues: “Circulating rotas earlier will help employees visualise shift plans easily, and as a result, any problems are much easier to spot. Synchronising rotas with the holiday calendar allows managers to see staff availability on key dates.
Maintaining effective communication with staff regarding rotas is an important follow-up step. This can be made simple through an app or system that serves as one point of truth. Managers can organise shift patterns and staff can volunteer for open opportunities, which ensures demand is always met and everyone is on the same page.
We appreciate that location will affect holiday planning, as those in tourist locations will be up over the summer, and different stores will trade in different ways. S4labour recommends having tools in place that work around your individual business needs.
There are tools out there that make it easy for owners to manage holidays, create balanced schedules and check rotas against time and attendance clock-in and out times.”
by Abby Henson | Nov 10, 2023 | Blogs
In the world of hospitality, managing costs effectively is an ongoing challenge. Traditionally, labour ratio has been a key metric for measuring success, but we think a more nuanced approach is needed to ensure both efficiency and quality. At S4labour, we use the metric of ‘slack hours’ to measure the effectiveness of cost management.
Understanding slack:
Slack refers to labour hours used on the rota that are above what is needed to deliver the agreed service levels. It’s the extra time that can be utilised for tasks like polishing cutlery and cleaning menus, without putting undue pressure on the staff. Finding the right balance of slack is crucial – aiming for around 25% slack is considered optimal for many businesses, but there are variations depending to scale and style of site.
The pitfalls of too much slack:
Overstaffing, with high levels of slack for a prolonged period, is not only a poor use of labour budget, but it also leads to a decline in team energy and concentration levels which ultimately affects service quality. Striking the right balance requires consideration of the specific needs and scale of your business.
The importance of rightsizing:
The size of your business plays a role in determining the ideal slack percentage. Larger sites can operate with lower slack percentages (around 15%), as more team members allow for better-designed shift patterns. This nuanced approach ensures that the right amount of slack contributes to a well-functioning operation without compromising on service.
Adjusting labour costs not only optimises efficiency, but it will also lead to happier staff and improved service quality. By managing slack hours, you create an environment where employees can excel without the stress of excessive workload.
Finding the right balance between labour costs and service quality is ultimately the key to better cost management. When measured and used effectively, slack becomes a powerful tool for improved service and staff satisfaction. Whether you run one bar, or manage multiple restaurants, success starts with optimising your labour costs.
Get in touch with S4labour to explore how we can help you to cut the slack and run a more efficient, happier and service-oriented business.
by Abby Henson | Nov 6, 2023 | Sales Figures
The latest figures for October reveal the industry experienced a 1.4% decrease in sales overall, compared to the same period last year, according to data from S4labour.
This decline was driven by sites outside of London, with sales dropping by 2.5%, whilst London saw a moderate increase of 3%. October also marks the first time since March that overall sales have been down.
S4labour’s Chief Growth Officer, Richard Hartley, commented: “As we begin the run up to Christmas, this downward trend is not what we would have hoped for, especially considering last month’s staggering 9.6% growth. Only two out of the ten months so far this year have seen a decline, so we are optimistic that as celebrations begin over November and December, we will start to see some positive figures again.”
by Abby Henson | Oct 24, 2023 | Blogs
The latest figures from Zonal, in partnership with hospitality data and insights firm CGA by NIQ, confirm that 2023’s no-show rate has returned to post-lockdown levels. Doubling from 6% in September 2022 to 12%, these statistics highlight the need to keep this important issue top of mind.
As COVID-19 continues to move further into the rear-view mirror, data shows that it is easy for consumers to forget the struggles hospitality has faced. Despite rising energy costs, staffing and supply chain issues, and the cost-of-living crisis, research from Zonal states that 1 in 7 customers book and then fail to show up without informing the venue. The implications of these ‘no-shows’ are not just financial, but contribute to negative customer service, over-staffing, and wastage.
One of the biggest costs to a hospitality business is labour. People are expensive and having ‘no-shows’ means that more team members are on shift than is necessary.
If we delve deeper into this issue, it is much more than an additional cost to the business. With a reduced amount of work, team members feel unproductive and unsatisfied. We have repeatedly evidenced that having too many staff on shift leads to worse service than too few staff. So, what can be done?
1. Communicate with your team:
- Driving the engagement and motivation of staff with effective communication makes a big difference to how well your labour is spent. Using a team app as a point of truth for shift allocations and tasks will increase productivity for every shift.
2. Ensure you are paying for the actual hours worked:
- Need to send a team member home earlier than expected? This shouldn’t be a problem, as long as you have a time and attendance system. This means the team member can clock out when they leave meaning you’re not overpaying for a shift.
3. Accurately report your sales and labour performance:
- A reporting tool from previous days till data, previous weeks and against last year for a like-for-like view can help you prepare for particularly busy periods, such as Christmas.
Zonal’s report as well as S4labour’s top tips can help significantly reduce the number of ‘No-shows’ and the impact it has on operators. However, it is essential that UK consumers are educated on the full impact that ‘No-shows’ are having, especially with ‘no-shows’ costing the hospitality industry £17.59bn a year. It is important now more than ever to #showupforhospitality!
Discover Zonal’s ultimate guide to eliminating ‘No-shows’ here: Show Up For Hospitality – Stop No-shows (zonal.co.uk)
by Abby Henson | Oct 4, 2023 | Sales Figures
Hospitality sees an impressive surge in like-for-like sales for the month of September, as reported by S4labour. Overall, the sector experienced a remarkable 9.6% increase in year-on-year sales.
London led the charge with an 11.5% boost, with growth underpinned by a 16.7% increase in food sales.
Non-London regions across the UK also experienced robust growth, with a 9.1% increase in like-for-like sales compared to the same period last year.
Richard Hartley, Chief Growth Officer at S4labour, commented: “These figures come as a much-needed boost to the UK’s hospitality sector and are ahead of inflation levels for the first time in a while. The good weather in September likely helped with this resurgence in consumer confidence for dining out. As we move into the final quarter of 2023, we should be cautiously optimistic about sustaining this upward trajectory.”
