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Labor Costs

Horizontales
The number of employees hired to fill one position in a year’s time.
This type of cost consists of both fixed and variable costs.
A planning tool used in restaurants and food service operations which helps determine the number of employees needed in each position without assigning specific names.
To maintain this in food service, control of labor cost is crucial due to slim profit margins.
Scheduling according to your business trends and understanding your staff's throughput and productivity.
When restaurants save money and operate better during busy times by using more staff effectively.
These costs don't change, like keeping a basic number of staff (“skeleton crew”) even when it's not busy.
These costs change, like hiring more staff when it's busy, which goes up or down with sales.
These workers are staffed according to sales volume, how busy or slow an operation is at a given time or seasonally.
These standards are the specifications of an operation with regard to products.
Verticales
An example is having a server buss their own tables vs. having a server and a busser both working at the same time.
A semi-variable expense tied to sales which impacts the bottom line significantly.
These workers work around 40 hours per week, have a permanent role, and receive a fixed amount of money for their work.
Achieve this with sales projections, operational costs, and labor costs.
The amount of sales an operation does for a time period.
These employees are workers like servers and cooks, and are paid by the hour and scheduled based on expected sales.
A crucial tool to manage a food service operation which details when and where employees work.
Theses standards are the specifications of the operation’s products and service.
These salaries stay the same no matter how much the business sells.