Restaurant Employee Wages - Green dollar sign on a tray

Restaurant Employee Wages and Benefits: Do they earn a living wage?

The Dessert [Part three]

We left each other last time coming to the following conclusion.

Now that we have established the requirement for benefits and the estimated costs of affording these, we have to plan how we would consider phasing these costs into a basic entry-level wage or salary. How do we break these exuberant costs down into smaller mouthfuls that our valued employees do not give up before they even have an opportunity to start providing for their loved ones’ health, wellbeing, and futures? 

See you for dessert!  

The Goal: To afford the following benefits.

  • Pension
  • Medical
  • Education
  • Insurance

The Pathway: How we will ensure affordability.

  • Increased staff retention.
  • Saving on costs.
  • Increased sales.
  • Caring employees.
  • Improved longevity of the business.
  • Improved profitability.

I am going to do a cigarette box sketch and with rough estimates indicate the potential additional cash availability if a 3% saving is made through the above on an average turnover of R500000.00 gross sales generated per month by 12 employees.

  • R500000.00/1.15
  • R434782.60 after vat deducted
  • R434782.60*3/100 to calculate the potential saving
  • R13043.48 is 3% potentially saved
  • R6521.74 50% due to the staff for their effort.
  • R543.48 per staff member available for financial planning.

Seems like investigating this option in conjunction with your employees is definitely worth the sauce.

Marius Joubert
Author: Marius Joubert

Founder of the first true community for the restaurant and hospitality industry.

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