Anyone Working/worked In Hospitality

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I worked in hospitality in various roles (BOH and FOH) for quite a few years- probably 13 years total in various roles but there was some crossover so total around 9/10. Kitchenhand, waiter, teeny bit of bar and chef.

I have not managed a place but from my perspective as an employee, spending a bit extra to look after your staff and make them feel appreciated will only benefit your business. What you save in wages may end up in someone's bag to take home or in free drinks for their mates if they feel you are screwing them sideways. Hospitality is a hard slog for both business owners and for employees.

Develop a relationship based on quality, enthusiasm and trust. I'm not suggesting you let them screw you over - some people are unscrupulous no matter what but treat them right and watch who treats you right back. Those that don't regardless can go. No need to be a sucker but also no need to be a prick (and believe me, I worked for a few).

It's a prick of a job - any leisure time the rest of the world has is when you're expected to be running around like a duck with no garnish. Add to that the long hours, shit pay and tendency towards various addictions and you have a 'shit business. Glad I'm out of it'"
I am still working on the figures but i can post them up once finished, if you are interested.

Ahh, you're doing a business plan. I see now.

Remember that your kitchen staff will generally cost you much more than the award rate. Don't pay a flat $21, it will hurt your business through staffing issues. I would love to see your figures once finished.

Paying efficiency wages in hospitality can be very good for you.
Attached are my labour cost estimate figures.

The type of business is a small bar and bistro with a 120 person limit. Here in WA there is a 'Small Bar' liquor licence that allows you to serve drinks without food but limits the patronage to 120 people.
For a bar this size i have made assumptions in terms of staff requirement, and then compared the difference between paying the modern award and an assumed market rate. The market rate is broken down into a flat rate all week, and a flat rate with weekend loading.
I have assumed one bar manager and one chef rostered at all times. For the market rate scenario, the chef and bar manager are assumed to get weekend loading, even for the flat rate option.

The weekly labour cost figures below are based around the modern award:
Modern Award: $27,838 (including super contribution)
Flat rate with weekend loading: +$2,193
Flat rate (except for bar manager and chef): -$1,048

If you could please have a look and let me know what you think about the assumptions and rates i used, and how they stack up against your experience, it would be very helpful.


View attachment Small_Bar_and_Bistro_Labour_Cost_Estimate.xls
I think you will find it will be nowhere near that much.

Are you planning on being an owner operator?

I have run bars/ nightclubs/ pubs for the last 12 years, all much bigger than 120 people, and if my wages were ever that high, I would have been shot.

Do as much as you can yourself, every dollar you save is 3 in the bank.

Do an EBA (If they still exist over there) and save yourself a fortune.

Thank your staff after every shift, and instantly fire anyone you ever find out to be giving away/ stealing booze.

Limit knock offs to tap beer or house wine; no packaged, and only 1 drink. Little cost for the reward you get.

And most importantly always lead by example, don't be the owner who sits at the bar and gets drunk every night, the staff will have no respect for you, and WILL do the wrong thing.
No way your wages would be that high. You'd have to taking over $100,000 a week to cover it :eek:

Your staffing assumptions are way off. PM me your email address.
For what it's worth, you should be doing a labour budget after you've finished all your other budgets and projections. No point working out how much you need to staff if all the other things aren't done (maybe you have done them, you haven't said). By that I mean

What type of bar will you be? Do you have taps or bottled beer?
What wines do you have?
How much do you want to charge for these drinks? How much do you want to make?
What type of menu are you doing? Family bistro, or more up scale? Is it large or small?
What is the price point?
How much will rent and overheads be?
How much revenue do you need to cover those?

etc and so on. I'd work out my labour last.

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