How to increase man-hour productivity at restaurants? We will explain effective methods and precautions.

In recent years, due to the decline in the working population due to the declining birthrate and aging of the population, as well as the impact of the coronavirus pandemic, it has become easier for restaurants to be faced with a labor shortage.

Under these circumstances, in order for restaurants to solve problems such as decreased sales and decreased added value, it is necessary to take measures that focus on improving "person-hour productivity," which is one of the indicators for evaluating efficiency and productivity. It's effective.

In this article, we will provide an overview of human-hour productivity and explain why it is important to improve human-hour productivity in restaurants.

In the second half of the article, we will introduce ways and precautions for restaurants to increase man-hour productivity, as rapid freezer that are useful for improving man-hour productivity in restaurants, so please use this as a reference.

What is human-hour productivity?

Person-hour productivity refers to the gross profit (results) produced by one staff member in one hour. Gross profit is the figure obtained by subtracting the cost (overhead expenses) from sales revenue.

Person-hour productivity is one of the indicators for evaluating the efficiency and productivity of stores and business establishments such as the restaurant industry, and has the advantage of being able to directly analyze whether operations are efficient.

The higher the productivity of man-hours, the more efficiently it can be evaluated that profits are being generated.

How to calculate human-hour productivity

Human-hour productivity is calculated using the following formula.

• Person-hour productivity = gross profit (sales - miscellaneous expenses) ÷ total working hours

According to the "Productivity Analysis of Small and Medium-sized Retail and Service Industries" published by the Small and Medium Enterprise Agency, the average man-hour productivity for restaurants run by small and medium-sized enterprises is around 1,900 yen.

Furthermore, according to the Ministry of Agriculture, Forestry and Fisheries' document ``Survey Report on the Productivity of Japan's Restaurant Industry'', it has been found that restaurants operated by large companies tend to have higher man-hour productivity than small and medium-sized enterprises.

This is thought to be because large companies are often more successful in improving operational efficiency through standardization of operations.

Reference: Productivity analysis of small and medium-sized retail and service industries (Small and Medium Enterprise Agency)

Reference: 2) Fact-finding report on productivity in Japan's restaurant industry (Ministry of Agriculture, Forestry and Fisheries)

Difference between human-hour productivity and labor productivity

There is an indicator called ``labor productivity'' that is similar to human-hour productivity.

• Person-hour productivity: An indicator of how much gross profit one worker generates in one hour
• Labor productivity: An indicator of how much output was achieved relative to the amount of labor input.

Comparing the two, we can see that human-hour productivity is an index that focuses on the individual "one worker."

There is also an indicator called ``person-hour sales''. The difference between man-hour productivity and man-hour sales can be easily understood by looking at the calculation formulas side by side.

• Person-hour productivity = gross profit (sales - miscellaneous expenses) ÷ total working hours
• Person-hour sales = Sales ÷ Total working hours

For man-hour productivity, "gross profit" is used as the numerator in the calculation formula, but for man-hour sales, only "sales" is used, so costs such as labor and raw material costs are not taken into account. .

Why it is important for restaurants to increase productivity

Improving man-hour productivity in restaurants is very important for the following two reasons.

Can counter rising labor costs

For a typical restaurant, the labor cost ratio is around 30%.

This number tends to be higher than other industries. Additionally, in recent years, many restaurants have been forced to raise hourly wages in order to secure staff in a marked seller's market.

In this environment, if restaurants can increase their productivity, they will be able to operate more efficiently and reduce labor costs.

Can solve the shortage of human resources

As mentioned at the beginning, Japan's working population continues to decline due to the declining birthrate and aging population.

As can be seen from the Ministry of Health, Labor and Welfare's "General Employment Referral Status (September 2020)," the new job opening ratio in food and beverage services is 4.34 times for those engaged in cooking, and 4.34 times for those engaged in customer service and waiters. The number of people is 5.14 times higher.

This figure indicates that the number of job openings is greater than the number of job seekers, and is extremely high compared to the average value for all occupations, which is 2.19 times.

As a result, in the case of small restaurants with little industry recognition, recruitment efforts are not going well, and there are an increasing number of cases in which business operations are becoming difficult due to a lack of manpower.

Under these circumstances, in order to continue operating with a minimum number of staff, it will be necessary to increase personnel productivity and implement efficient operations.

How restaurants can increase productivity

So, what are some ways to increase human productivity?

In order to increase productivity, it is necessary to either `` reduce working hours'' or `` increase gross profit.''

Eliminate waste in work

The first thing you should do to reduce working hours is to take an inventory of your work while keeping in mind the ECRS principles below.

• Eliminate
• Combine
• Rearrange
• Simplify

For example, we check whether there is any waste in the work flow line or the work itself, or investigate whether more efficient operations can be created.

In addition, by creating a manual for tasks that can be standardized, not only will wasteful work be eliminated, but it will also be easier to improve work efficiency by improving the skills of new employees.

Aim to increase gross profit

In order to improve man-hour productivity, it is also important to increase "gross profit".

In fact, you can increase your gross profit by taking the following measures to increase sales and reduce costs.

[Initiatives to increase sales]

• Increase the added value of products and services to raise prices
• Introducing delivery and takeout products, etc.

[Efforts to reduce costs]

• Reduce food purchasing costs by purchasing in bulk
• Reduce purchasing costs by reducing waste loss

By implementing these initiatives, you can improve man-hour productivity and gross profit.

However, focusing only on improving human-hour productivity may have negative effects in some cases.

In the next chapter, we will introduce points to keep in mind when restaurants work to improve staff productivity.

Points to note when restaurants work to improve human productivity

In order to solve problems faced by restaurants, such as labor shortages and rising labor costs, it is important to increase man-hour productivity, as introduced above. However, focusing too much on improving human-hour productivity can sometimes have negative effects.

For example, touch panels for ordering, which have been introduced at major restaurants, are often considered to be a very convenient system for the restaurant, as it can reduce the number of staff needed to take orders.

However, for people such as the elderly and people with disabilities who do not know how to operate a touch panel, this can be extremely difficult to use, leading to the perception that the quality of the service has deteriorated.

In another example, we reduced the number of part-time workers to the bare minimum in order to keep costs down, but the time it took to provide services became longer. In some cases, customers have been kept waiting, resulting in lower customer satisfaction and fewer repeat customers.

In this way, it is very important for stores to improve human productivity, but doing so alone may cause problems with customer satisfaction. Therefore, when increasing human-hour productivity, it is important to be aware of the store's concept and hospitality, and to be careful not to lower customer ratings.

Improving productivity per employee using rapid or flash freezing

​Introducing rapid freezer is a very effective way for restaurants to improve manpower productivity without changing customer reviews.

The main benefits include "improving work efficiency," "reducing purchasing costs," and "providing products with stable quality."

Advances in freezing technology have made it possible to reproduce the quality of food to such a level that even professional chefs would not notice that it was frozen. Nowadays, even Michelin-starred restaurants with a customer spend of tens of thousands of yen use rapid freezer.

By introducing rapid freezer, you can make effective use of your spare time and handle preparation and cooking all at once, so you can increase work efficiency by preparing all at once, and even on days when there is no cook. Part-time workers will be able to easily provide products of the same quality as usual.

In addition, since ingredients can be stored for long periods of time, purchasing costs can be reduced by purchasing in bulk at a cheaper time.

Incorporating these methods of utilization will lead to improved work efficiency and reduced purchasing costs, making it possible to significantly improve human-hour productivity.

In addition, conventional rapid freezer are systems that apply strong cold air from one direction, which tends to cause food to dry, oxidize, discolor, and crack.

The Art Lock Freezer solves these refrigeration issues.

The Artlock Freezer surrounds the food with gentle cooling air at high speed, minimizing damage to the food.

In addition, it is equipped with AI automatic control (smart freeze) and can freeze products at any temperature. This allows hot food such as freshly baked or fried food to be frozen without cooling, and by locking in the crispy texture and aroma of the grilled food, it is possible to provide the deliciousness of freshly cooked food even after thawing. .

Conclusion

In order for a restaurant to increase manpower productivity, it is necessary to eliminate operational waste and increase gross profit while being careful not to reduce qualitative evaluations such as customer satisfaction.

In particular, as a means of improving operational efficiency, it is effective to introduce rapid freezer reduce the burden on kitchen staff and simplify operations up to and including serving.

By using the special technology of Artlock Freezer, it is possible to freeze and preserve food without sacrificing its taste. If you are interested in Art Lock Freezer, please contact us from the page below.