Roster Planning and Wages Cost Estimation for Spinach Restaurant

This report provides a detailed analysis of the staff roster planning and wages cost estimations for Spinach Restaurant, a fast-food and beverage service establishment. The report focuses on the allocation of permanent and casual labor, considering the Hospitality Industry Award 2010. It outlines the restaurant's operational schedule, including dinner and brunch services, and calculates the required number of casual staff based on customer volume. The report presents a two-week wages cost estimation, detailing the fixed wages for permanent staff and hourly rates for casual employees, including overtime calculations. It also considers payroll taxes, work cover, and superannuation contributions. The analysis highlights the importance of roster planning for smooth business operations and cost management. The report concludes by comparing the total wages against a budgeted figure, offering insights into labor cost control and resource optimization. References to industry regulations and relevant literature are also provided.

Roster Staff
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Executive Summary
The roster and wages cost estimations have been prepared in respect of Spinach
Restaurant that engages in the fast food beverage services. The roster planning depicts that the
restaurant will keep a mix of permanent and casual labor. The permanent labor has 4 staff
member and the casual labor is to be hired on need based depending upon the number of
customers. The initial estimate depicts that the restaurant would need a total of 38 casual staff to
service customer in the week-1. The total cost of permanent labor in week-1 would amount to
$5,650.25 and this will remain the same in the week-2. Further, the total cost of casual staff in
week-1 would amount to $10,421.57 and the same would be $6,915.76 in week-2. In the week-2,
it has been assumed that the customer volume will be lower as compared to week-1.
Introduction
The roster planning implies a process of planning the workforce and estimating the
payroll cost for the business. It is important for the business to keep plans in place to hire the
workforce so as ensure smooth running of business (Fleming and Varghese, 2016). Further, the
planning to timing of use of labor is also important because it affects the cost payroll. The
worker’s pay and work timings are regulated by the government of the state and therefore it is
essential to prepare the roster according to the rules and regulations. The worker’s pay and work
timing in the hospitality industry in Australia are governed by the Hospitality Industry Award
2010, which provides for the hourly rates, normal working hours, overtime rates, work breaks
and holidays. In the context of this, a report has been prepared that covers the roster planning for
a restaurant namely Spinach Restaurant. The report covers roaster planning and wages
computations for two week’s period for the restaurant.
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Brief Introduction of Restaurant
Spinach restaurant offers fast food and beverages to the customers. The restaurant runs 5
days a week from Wednesday to Sunday with Sunday being opened for brunch only. During four
days of the week from Wednesday to Saturday, the restaurant offers dinner only. The restaurant
opens at 15:00 and closes at 23:00 during four days of the week (during which dinner is offered).
On Sundays, the restaurant opens at 7:00 and closes at 15:00 for brunch.
Roster Planning
In planning the roaster, the restaurant will abide by the provisions of Hospitality Industry
Award 2010 in regards to shift timings, breaks, and wages pay (Fairwork.gov, 2017). As per the
Hospitality Industry Award 2010 there are three categories of employees such as full time, part
time, and casual. The full time employees are the permanent workers employed to work on a full
time basis and receiving fixed salary. Further, the part time employees are the workers appointed
on a part time basis and receiving fixed salary. The casual employees are those who are hired on
hourly basis and paid on an hourly rate. The casual workers are not the employees of the
company rather they are hired on a contract and work as per the terms of the contract
(Fairwork.gov, 2017).
As per the provisions of hospitality award, a full-time or part time employee can work for
a maximum of 11.50 hours in a day or 38 hours in a week. Further, the employer is allowed to
average the working hours of a worker over four weeks (Fairwork.gov, 2017). This means that
the number of working hours could exceed in a particular week beyond 38 hours but the average
number of hours per week over the period of four weeks should not exceed 38 hours. Further, as
per hospitality award, the wages rate per hour for the casual worker is $23.51. If the worker
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works beyond the normal hours, an overtime of 150% of the basic wages rate would be required
to be paid. Further, if the worker works on Sunday, the overtime will be 200% of the basic wages
rate (Fairwork.gov, 2017).
Spinach Restaurant hires two types of labor, one is being fixed wages and another is
being paid based on hourly rate. There are four employees such as Suzie (supervisor), Reece
(executive chief), Mr. X (Manager), and Adam (Cleaner) employed based on the fixed weekly
wages. Further, the employees of the customer services are hired on a contract basis being called
casual workers. The casual workers are hired based on the expected number of customer arrival.
In the case of brunch, 1 worker for customer service is needed over 30 customers and in the case
of dinner, 1 worker is needed over 20 customers.
Taking into account the expected number of customers, it is estimated that 5, 8, 9, 10, and
7 workers would be needed to serve the customers on Wednesday, Thursday, Friday, Saturday,
and Sunday respectively. The restaurant keeps Monday and Tuesday as the reserve day off
(RDO). The restaurant runs from 15:00 to 23:00 from Wednesday to Saturday and on Sunday, it
opens at 7:00 and closes at 15:00. The four workers who are paid a fixed wages are planned to
work each day of the week apart from the reserve day offs. Further, the casual workers for
customer service are hired on need based. There are five workers namely Alex, Lee, Trump,
Obama, and Putin who will work all five days of the week.
Further, two casual workers namely Andersen and Ponting are planned to work on four
week days from Thursday to Sunday. Gilli another casual worker would work on Thursday,
Friday, and Saturday. Roser would work Friday and Saturday and Nadal would be needed only
on Sunday.
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Wages Cost Estimation
In order to make the wages cost estimations, information in regards to wages hourly rate
and the hours worked is required (Weygandt, 2004). Based on the roster created for the staff, the
permanent workers would work 4s0 hours a week. Working beyond the normal hours would not
affect the wages paid to these workers because they are paid a fixed wages. Further, the casual
staff hired on an hourly based pay rate would work for 8 hours on daily basis. The maximum
normal hours allowed per week for casual workers are 35 hours and if the worker works beyond
these 35 hours, he will be paid an overtime.
The total fixed pay for the week-1 amounts to $4,850 on which the payroll tax @5% is
$242.50, work cover@2% is $97, and superannuation @9.50% is $460.75. Thus, total fixed
wages for the week-1 is $5,650.25. The fixed wages for the week-2 will be same as the number
of employees and the pay rates are same. Thus, the total fixed wages for the week-2 would also
be $5,650.25. The total wages of casual staff for week-1 amounts to $8,945.56 that includes
overtime also. The payroll tax on this wages is $447.28; work cover is $178.91, and the
superannuation is $849.83. The total casual wages of the week including all the basic, taxes,
work cover and superannuation amounts to $10,421.57. The sum of fixed and hourly rate wages
for week-1 amounts to $16,071.82 which is slightly higher than the budgeted figure of $15,750
($45,000*35%). However, total wages of week-2 is lower than the budgeted figure. The total
wages of week-2 amounts to $12,566.01 against the budgeted amount of $15,750.
Conclusion
The discussion carried out in this report revolves around the issues governing the staff
roster planning and wages computations. From the discussion, it could be articulated that the
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roster planning is crucial for the business to run hassle free. Further, estimating the wages cost is
essential to reduce the overspending and utilizing the labor resource up to the optimal level.
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References
Fairwork.gov. 2017. Hospitality award. [Online]. Available at:
https://www.fairwork.gov.au/employee-entitlements/hours-of-work-breaks-and-rosters/hours-of-
work/hours-of-work-industry-specific/hospitality-award [Accessed on: 22 August 2017].
Fleming, S.D. and Varghese, A.C. 2016. Organization and Management of IVF Units: A
Practical Guide for the Clinician. Springer.
Weygandt, J.J. 2004. Hospitality Financial Accounting. John Wiley & Sons.
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