Day 117 - 27 Apr 95 - Page 27


     
     1        Cumulative labour tells what your labour percent is so far
     2        for the week, and is sometimes easier to compare to the
     3        cumulative targeted labour for the week or month". Then it
     4        gives an example which I will not read.  Then it says:
     5        "By tracking actual labour on a daily weekly basis, and
     6        you can better manage labour by being pro-active rather
     7        than reactive.  That is, you can make necessary adjustments
     8        before the end of week or month, without" -- and that word
     9        is in italics, as were pro-active and reactive -- "without
    10        sacrificing customer satisfaction by trying to cut a lot of
    11        hours on the last day.  Your manager or
    12        owner/operator-supervisor can help you determine acceptable
    13        labour costs for your restaurant.  Anything above that is a
    14        problem and you need to identify the factors causing the
    15        problem.  Use the following to help you analyse each area".
    16
    17        This may be a matter for comment Mr. Nicholson; thus far do
    18        you see anything in what you have read which is apt to put
    19        pressure on the trainee to meet a fixed barrier for his
    20        labour cost?
    21        A.  No.
    22
    23   Q.   Then at the top of the next page, 597, there is a passage
    24        about "Total Labour Hours" and an example is given, which
    25        I will not read.  I want you to look, please, at the
    26        section headed "Managing Labour:  In each example, where
    27        were the extra hours spent?  If sales are below projection,
    28        lower sales may be reason for the higher labour percent.
    29        If, however, sales were not below projection, some further
    30        fact finding is needed.  Regardless of sales, when labour
    31        is running high, many managers automatically begin to cut
    32        unit-producing hours.  This, in turn, negative QSC" --
    33        quality service and cleanliness -- "and customer
    34        satisfaction.  Sales decrease and labour increases
    35        prompting additional cuts in unit-producing hours.  And the
    36        cycle continues.  This is not" -- This is in bold --" this
    37        is not effective labour management".
    38        A.  Absolutely right.
    39
    40   Q.   That is something you would see as being the right
    41        attitude?
    42        A.  That is right.
    43
    44   Q.   To promulgate them in the company?
    45        A.  That is right.
    46
    47   Q.   What is the difference between unit-producing and
    48        non unit-producing hours?  It says you will want to look at
    49        unit-producing and non unit-producing hours and management
    50        hours to uncover the cause. 
    51        A.  Unit-producing hours are effective hours in running the 
    52        restaurant, non unit-producing hours ----- 
    53
    54   Q.   A unit-producing hour might be an hour in which a unit of
    55        sales is generated?
    56        A.  That is right.
    57
    58   Q.   Now, Mr. Nicholson, finally, some miscellaneous matters.
    59
    60   MR. JUSTICE BELL:  I see that this is undated on the index ---

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