Deterministics Contextual Labor Management – Bringing it all Together


Over the past few months you have received installments of a white paper series that introduced Contextual Labor Management (CLM). In this summary we describe how Deterministics brings together all the components of CLM into an integrated framework for planning, forecasting, budgeting, and day-to-day labor management.


Labor cost, as a percent-of-sales, is the traditional metric used to represent how much labor should be consumed for each dollar-of-sales to achieve corporate profit goals. The problem of course is that labor cost as a percent-of-sales, while a useful metric at the aggregate level, has little to do with what a restaurant should be spending on labor at a point-in-time. Each restaurant operates with its own unique “labor context”. Even when operating according to brand standards, some restaurants will easily exceed the corporate labor percent target while others won’t be able to come close.


Deterministics CLM uses time measured Labor Recipes (work content) in conjunction with point-of-sale transaction detail (work context) to calculate how much labor is required for each restaurant. We all know that bar mix and menu mix will influence labor requirements, but that is only part of the story. It takes extreme attention to detail to accurately calculate labor requirements. Business patterns by time-of-day, table turn time, party size, arrival rate, menu mix, bar mix, service destination, settlement type and many more variables, need to be taken into account to accurately calculate the amount of labor required as well as the how, where, and when it should be deployed.


Deterministics provides the labor intelligence to make your Workforce Management System smarter. We don’t replace your system, we augment it. Not only do we support day-to-day labor management, we provide tools for the Marketing, R&D and Finance departments to align brand standards with labor cost goals. For example, the CLM toolkit provides cost efficient, timely, company-wide “what-if” analysis of LTO impact as well as new menu impact, make or buy questions and other process improvements. We also support Operations to ensure labor staffing is in compliance with brand standards and labor cost goals. Deterministics CLM is the only system that covers it all!


CLM

Deterministics calculated labor requirements reflect what each restaurant should spend on labor when applying best practices and adhering to brand standards, at any point-in-time. Accurate, ideal labor calculation is the cornerstone for a top-to-bottom, sustainable strategy for managing labor at all levels of the company. Here’s what your management team can expect from the Deterministics CLM system:

Restaurant Level Management

  • Believable Labor Standards – restaurant level management understands the concept of labor recipes and how they are triggered by guest decisions leading to a high level of believability and buy-in.
  • Opportunity Analysis – guidance for where and when to reduce unnecessary staff and where and when to increase staff to improve throughput and customer satisfaction.
  • Forecasting – the realities of each restaurant’s unique and dynamic guest driven context is used to forecast labor requirements by fifteen minute segment and position, to provide an easy-to-use schedule template or an electronic interface to your existing workforce management system.

Field/Supervisory Management

  • Exception Reporting – provide clear direction to supervisory management on where their time can be best applied to improve operations, to meet brand standards and where corrective action may be needed.
  • Comparative Reporting –compare restaurant trends over time to illuminate business trends before they would otherwise be visible.

Financial Planning & Analysis

  • Cost Analysis - see the true cost of operating according to brand standards separate from the impact of over/understaffing and wage rate variations.
  • Context Based Budgeting – Deterministics tools can be used to generate accurate financial budgets covering annual, quarterly, and weekly periods to reflect the individual guest-driven context of each restaurant.

Research and Development

  • Analytics & Modeling – evaluate the impact of LTOs, menu changes and processes changes on restaurant labor before implementation and track post implementation results. Eliminate expensive false starts and reduce the need for field testing.


In today’s highly competitive environment, successful restaurants need an adaptable labor management strategy that accounts for all the components that impact productivity, guest satisfaction and overall throughput. The solution is to partner with an expert, one whose depth of experience and expertise provides knowledge, creativity and flawless execution. Deterministics is an expert at planning, executing and managing every detail required for an optimized labor management solution. We’ll work side-by-side with your team to deploy a Deterministics CLM solution that offers an effective and efficient means to seek and compare labor management alternatives specific to your needs. It can be implemented as a standalone system or integrated with your current scheduling system.


Contact us today to learn how Deterministics CLM can assist in your long term success.


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Deterministics is the leading provider of CLM based labor management consulting services and software solutions for the multiunit restaurant operator.


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