Comparison & Analysis

Productivity

Examines how efficiently an operation uses its resources

Outputs

meals produced or customers served

Inputs

labor hours, equipment, and money

Productivity measures are used to…

track changes and compare performance

FTE stands for

Full time equivalent

Headcount counts people; FTEs express…

their combined hours

Ex: 3 people working 20 hours/week = 1.5 FTE

1.0 FTE =

40 hours per week or 2080 hours per year

Meals per labor hour

• measures meals served for each hour of labor

• uses meal counts and labor hours from the same time period

Meals per labor hour equation

total meals served / total labor hours = meals per labor hour

Ex: 300 meals / 60 hours = 5 meals per labor hour

Labor Minutes per Meal

• Measures the average labor time used per meal

• Ideally you want less min/meal

Labor Minutes per Meal Equation

Labor min per meal = total labor minutes / meals served

• Must convert labor hours to minutes first

Ex:

• 60 hrs x 60 min = 3600 min

• 3600/300=12 min/meal

Payroll cost per day

Add the wages earned by all employees

Ex: 10 employees each work 6 hours at $15 per hour

• 10 × 6 × 15 = $900

Payroll cost per meal equation

daily payroll cost / meals served

Ex: For 300 meals served

• $900 / 300 = $3 payroll cost per meal

Total labor cost

Includes payroll + additional employer costs (benefits, employer payroll taxes, etc)

Labor cost per meal equation

Total labor cost per day / meals served per day = labor cost per meal

Ex: $1,200 / $300 meals = $4 total labor cost per meal

Meal equivalents

• Foodservice staff prepare more than complete meals

• snacks, nourishments, and beverages also create work

• meal equivalents convert different services into a common meal unit

• Ex: 3 snacks = 1 meal equivalent

  • 120 snacks / 3 = 40 meal equivalents

  • 300 complete meals + 40 snack meal equivalents = 340 meals

Meal equivalents from sales

• cafeterias may sell individual items rather than complete meals

• sales can be converted into meal equivalents using an established reference meal price

Meal equivalents from sales equation

meal equivalents = applicable sales / reference meal price

Ex:

• Daily cafeteria sales: $1,200

• Reference meal price: $6

• 1200 / 6 = 200 meal equivalents