Labor Forecasting with Revel iPad POS
Revel iPad POS users may already know about the Employee Scheduling feature, and Revel has recently added more tools to help empower businesses. Here’s how you can improve business efficiency by forecasting labor costs.
Being able to accurately forecast business costs–including labor costs–will help your business thrive. With Revel iPad POS, owners and managers have the ability to see projected labor costs and the percentage of sales, enabling them to set schedules in a way that ensures profitability and business success. This feature is available in the same section of the backend as employee scheduling–simply select the “Wage/Forecasting” button, and your schedule will appear along with forecasting fields at the bottom.
- Set Labor Cost Percentage Goal. Owners and managers must enter in a percentage for labor costs–this figure is typically around 26% of your total revenue, although we advise owners to research and calculate the appropriate percentage for their business. This Irish pub, for example, has a total annual revenue of $1,500,000, and has set their labor cost goal between 24% and 28% of total revenue.
- Forecast sales. Once a goal has been set, owners and managers can enter in a forecasted sales figure for each day of the week. The forecasted labor percentages are automatically calculated based on the goal entered, and the percentage turns green, orange, or red depending on where those figures are in terms of the goal. Green means you’re at or below your goal, orange refers to a difference within 1% of your goal, and red means the difference is over 1%.
- Mean sales and cost. In addition to forecasting, this section of the forecasting tools will also consult last week’s sales to see whether labor costs are within the set goals. Therefore, even if a manager’s forecasting is off, users can still see whether the mean labor cost percentage (calculated based off last week’s sales) is within the desired percentage.
- Make adjustments. The above-mentioned tools enable owners and managers to make informed business decisions. If the forecasted labor cost is not within set goals, users can easily adjust schedules to stay within those goals. Perhaps there are three people working during a shift when only two are needed, or one employee is earning double time unnecessarily. Regardless, it’s easy to make changes–simply click the schedule of that employee and adjust accordingly.
Labor is the backbone of any hospitality business, and Revel iPad POS has the tools to help owners and managers achieve ultimate profitability. The forecasting tool mentioned above is a recent update in an ongoing mission to help Revel customers run their shops successfully.