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The key to cost management: cutting slack for improved service and staff satisfaction 

by | 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.  

 

Find how S4labour can help

Hospitality sales see first decline since March

by | 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.”  

Industry reports strong year-on-year growth for September

by | 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.”  

Pedalling for Pubs: Supporting Hospitality Charities

by | Sep 28, 2023 | Blogs

Help us in supporting hospitality charities

The hospitality industry thrives on the simple joys of bringing people together and creating memorable experiences. But there is so much more that makes our industry special. We are customer-centric; we foster cultural exchange; we build relationships with our guests; we are continually creative and innovative, and we provide over 2.5 million jobs in the UK.

In recent times, we are becoming ever more resilient, and it is because of our support for one another that we continue to thrive.  

Two remarkable charities: Only A Pavement Away and The Licensed Trade Charity are the backbone of the industry’s resilience. Supporting them, however possible, will make a big difference. 

That’s why S4labour’s very own, Richard Hartley, is embarking on a remarkable journey through Kenya to raise funds for these vital organisations with Pedalling for Pubs.  

Only A Pavement Away 

Only A Pavement Away recognises the hidden potential within the homeless community and those with criminal convictions. Founded by Greg Mangham, a hospitality industry veteran, they aim to bridge the gap between marginalised individuals and employment opportunities within the hospitality sector. Their mission is to provide a path to a brighter future for those facing adversity while simultaneously addressing the staffing shortages faced by the industry. 

Greg Mangham, CEO of Only a Pavement Away: 

“I would never have imagined that when I first met Richard many moons ago that he would end up cycling in faraway lands to raise money for Only A Pavement Away. For those of you that know Richard, you won’t be surprised that he has taken on this challenge yet again. It would be great to give Richard as much support as possible. A great guy working in a great industry, supporting a great cause.” 

The Licensed Trade Charity 

The Licensed Trade Charity has been a devoted supporter of individuals working in the licensed trade for over two centuries. This charity offers financial assistance, emotional support, and practical guidance to employees and their families in times of crisis. From helping someone navigate through financial difficulties to providing mental health support, this charity embodies the spirit of supporting one another.

Paula Smith, Head of Marketing, Licensed Trade Charity 

“We are so grateful to Richard for taking part in Pedalling for Pubs for the third time in 2024.  The Licensed Trade Charity has seen enormous growth in calls to our 24/7 helpline where licensed trade people can talk to someone for practical advice, emotional support and to apply for financial grants. We are currently seeing ten times the calls we were five years ago.  By taking part in Pedalling for Pubs Richard is supporting the LTC with valuable funds that ensure we can continue to support licensed hospitality people financially, support that is needed now more than ever as we continue to manage the high cost of living.  His involvement in the ride also raises awareness of the that helps us reach more people who would benefit from our support. We wish Richard the very best of luck in Kenya and send him our heartfelt thanks for his continued support.”  

Pedalling for Pubs 

Richard Hartley, our Chief Growth Officer, is embarking on a remarkable journey across Kenya in aid of Pedalling for Pubs 2024. It’s Richard’s third time behind the handlebar raising funds for Only a Pavement Away and The Licensed Trade Charity. 

As he pedals through the stunning landscapes of Kenya, he’s raising awareness and funds that will directly support the industry. 

Donate to help both charities continue their invaluable work:   

Spread the word: Share this blog and Richard’s journey on your social media platforms, encouraging others to join the cause. By spreading the word, you can help these charities reach more people in need. 

Volunteer: If you have time and skills to offer, consider volunteering with these charities. Your expertise and passion can make a significant difference in the lives of those they support. (charity contact info) 

It’s our turn to come together and support the industry we know and love. 

By donating, sharing, and getting involved, you can be a part of this extraordinary journey and help ensure that the hospitality sector continues to thrive, one pedal stroke at a time.  

Donate to both charities here
Watch Richard's video

The Chestnut Group

by | Sep 25, 2023 | Customer Stories, Multi Site, Stay / Sleep

Case Study

How The Chestnut Group streamlined their people management 

Company Name: The Chestnut Group  

Chestnut Overview

Winners of this year’s Pub and Bar Award, Chestnut boast a collection of beautiful East Anglian pubs. Founded by Philip Turner, the 16-strong group are known for their focus on guest experience, delivered by their championed frontline workers.  

People Director, Charley O’Toole, spoke about how the group have streamlined their people management across over 500 team members, from their 15 general managers to Ops managers and sous chefs, to get the best from them.  

“I publish a rota, and everyone gets a notification on their phone. It was so quick and simple to do. In every hospitality business I’ve ever worked in, the team are always keen to receive their rotas as far in advance as possible. It helps people to plan their lives outside of work and they are always really appreciative.” 

Charley O'Toole

People Director , The Chestnut Group

Workforce management

Chestnut have worked with workforce management provider S4labour for around 3 years. With such a complex and growing business, using paper and spreadsheets to manage their shift patterns and pay wasn’t a viable option, and the business also had a focus on streamlining communications and HR onboarding.  

Charley commented: “I publish a rota, and everyone gets a notification on their phone. It was so quick and simple to do. In every hospitality business I’ve ever worked in, the team are always keen to receive their rotas as far in advance as possible. It helps people to plan their lives outside of work and they are always really appreciative.” 

S4labour onboards new employees onto the system and the HR tools allows all important employee information and documentation to be completed accurately and efficiently.  

By systemising deployment and rotas, labour demand and budgets are looked after and sales increase is driven by having the right people at work at the right time, without any of the stress or extra admin. “When you’re looking at your rota model and you’re able to see your flex, it helps you to determine if you have the right level of team required – it makes our lives really simple”, Charley commented.  

Once the rotas are in, they can be viewed via the app. Holiday management is made easy with visibility of accruals, the ability to request time off and holiday pay automatically calculated in the rota. 

Charley added: “anything that makes lives simpler for our teams is a big win for us.” 

Cost versus benefit

Cost versus benefit is high on every operator’s agenda. When it comes to investing in S4labour, Charley said: “Cost of living has risen, the hangover of COVID, Brexit, you name it, everything is much more expensive, so you have to be really mindful about labour costing and I think S4labour is commercial in that respect.” 

Benefit

One thing really stands out for Chestnut, and that is the customer service they receive with S4labour.  

In terms of first-line support and account management, Charley said “everyone is so incredibly approachable; nothing is beneath anyone. It makes us feel like it’s a partnership, rather than S4labour just being a product that is supplied to us.” 

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