The Restaurant Doctor - Electronic House Call

ELECTRONIC HOUSE CALL - September 3, 1999

WHAT AM I WORTH?
Renee Newing <newing@norcom.mb.ca> writes:
I am a manager of a sports facility/restaurant/bar. annual sales are just below 1M and I am beginning negotiations for salary and bonuses. Could you tell me what Canadian professionals are generally receiving? I have a diploma in Bar Operations & Beverage Management as well as one in Food Services Management. I have 11 years experience, six in management. any ideas of where to begin? I am in a northern community and seldom am able to communicate with others in my field who look at this industry as a career and not just a job. I would appreciate any suggestions.

A note from the Doc:
Salary levels are always going to be an issue with our staff. While I always wanted to pay at, or slightly above the going rate in my market for similar restaurant jobs, I think we have to look farther. More and more businesses are starting to raid the hospitality industry for talent because they have realized that hospitality people have a customer service ethic far different from the average drone. Because their margins are different, they can offer more. How many of your managers do you think might be enticed away to manage a video store for $5-10K more money, a killer benefit package and a virtually guaranteed 40-hour week? It is happening.

I will grant you that restaurants get in your blood and most other jobs are boring by comparison, but I think we have to look at what other employment options our staff (including hourlies) have when we are formulating our compensation packages. As long as the economy remains strong, we operate in a labor market that is far more competitive than just what the chain down the street is offering.

SOUND FAMILIAR?
Shanny Covey <robins@robinsrestaurant.com> sends this plea for help:
I am looking to implement a medical benefit for staff that work more than 20 hours per week and would like feedback on plans that work for others. I've checked into group insurance, but can't seem to get the 75% participation requirement since we would be able to contribute only 50% of the premium. I'd be grateful if you'd post this request to other retauranteurs.

A note from the Doc:
I will be interested to see what suggestions you have for Shanny (please copy me if you send her any ideas.) Insurance laws vary greatly from state to state, but any insight will be helpful. In Washington, the two largest health insurance companies have just stopped writing individual medical policies. The only way you can get health insurance from them is through an employer plan. This may be a competitive advantage . . . but only if you are prepared to offer a medical plan.

My suggestion is that your contribution to the premiums be based on the number of hours that people work. If you are willing to pay, say 50 cents an hour toward benefits, the person who works 40 hours a week would get $80 a month toward their premium and someone who works 20 hours a week would get $40. (We have an advantage in that our workforce is more typically young singles.) I feel that the contribution has to be calculated on the same basis for everyone or we are penalizing the single workers because they chose not to get married. Hours is the safest way to go. Let me know if you want to explore this in more detail.

ON THE HOME FRONT
The building permit (finally!) was released and we start pouring concrete today for the new house!

Happy Labor Day weekend (unless you are like my friend Rufus Pritchard on the Outer Banks of North Carolina who has effectively had his big Labor Day Weekend business flushed by Hurricane Dennis!) Be thankful.

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