Restaurateurs are looking for ways to increase operational efficiencies to offset the rising cost of labor. New federal overtime laws are taking effect at the end of the year and minimum wages are increasing in several parts of the country:
• New overtime threshold: On December 1, 2016, the salary threshold for workers eligible for overtime increases from $455 per week (annual salary of $23,660) to $913 per week (annual salary of $47,476). In addition, the new law states pay eligibility will be automatically updated every three years based on wage growth.
• New minimum wage increases: In April, New York passed a law to increase minimum wage in New York City from $9 to $15 per hour by the end of 2018, with remaining regions of the state on schedule to increase minimum wage through 2021. In addition, a plan to increase minimum wage to $15 for fast food workers began on December 31, 2015, and the wage for tipped employees rose from $5 to $7.50.
Minimum wage also has recently increased in a number of states including Connecticut, Massachusetts, New Jersey, and Rhode Island, with more states debating minimum wage increases in the coming years.
You may have counted on your salaried employees to work beyond 40 hours each week to accomplish all of their job responsibilities and your staff may include minimum wage workers. New overtime and minimum wage laws make it more important than ever for your business to manage labor and work more efficiently.
Here is some advice on how your point of sale (POS) system can automate some tasks and help your operations run more efficiently:
• Optimize Scheduling: Your POS system can provide data that will help predict high- and low-traffic times at your restaurant, so you can schedule the right number of employees.
• Automate Administrative Tasks: Managers can use the POS system to automatically generate schedules, purchase orders, or to manage inventory, freeing up time to perform other tasks.
• Offer Self-Service Options: POS kiosks enable customers to place orders or complete payment transactions, reducing the need for staff to assist them.
• Promote Online Ordering: Instead of an employee to take orders by phone, encourage customers to place orders online or through a mobile app. This will decrease the need for labor to take orders for delivery or take-out and will help increase order accuracy.
The cost of labor will always increase, so managing your workforce in a way that controls costs is important to running a profitable business. Contact Leebro POS for information on how your POS system can help you operate more efficiently.