I'd be interested to know, what is the current labor cost? How much would it have to decrease to meet the goal? I mean, if its at 28% now, wow, that's a pretty big challenge. But if its currently at 18%, maybe that's a little (stess on "little"!) more manageable. What about payroll tax? Is that included? Comp. insurance? I've never worked anywhere with such a low percentage. I agree with the 25% goal, although I struggle to achieve even that (and rarely do). More volume would certainly help my situation, but only to a point. If anyone out there actually is operating (happily operating, that is) at 14% labor, I'd love to know the secret!!
I'm relieved to read comments re: profit driven bonuses. I've never been wild about that concept. I already pay people, don't I? Better than most same type businesses where I live. I mean, if we busted A** for a quarter & did really well, I might want to give bonuses for that as a reward. But not as an incentive. I guess even that could get tricky after a while, though. I'm certainly not there yet, in any event.
What is the correct way to figure in sales tax, by the way? I know that, technically, sales tax is money a business is holding in trust (sort of) for the state, but when I fill out that return every month, it starts to feel as much like an expense as everything else. Should labor/food cost be figured on the before tax price? And, if so, why? This is a constant source of confusion for me.
"'If I watch out for rocks
With my eyes straight ahead,
I'll keep out of trouble
Forever,' I said."
Dr. Seuss, "I Had Trouble in getting to Solla Sollew"