Restaurant Owner Labor Cost Tip: DO THIS, and you can be in Hawaii next year...

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  • @Therestaurantboss
    @Therestaurantboss  5 років тому +6

    How do you make sure employees clock out when they are cut?

    • @CharleyCaines
      @CharleyCaines 5 років тому +1

      you make sure they clock out. If they don't, then it stalls their paycheck. When that happens they will quickly make sure they clock out in the future and clock out correctly.

    • @mohammedfawzy887
      @mohammedfawzy887 4 роки тому

      Thank you very much
      I need the method to calculate the cost of each item in the menu and how to allocate utilities costs

  • @johnmutchka7272
    @johnmutchka7272 10 років тому +64

    I would never advise calling employees off. If they were hired under agreement to work a certain number of hours a week, they are relying on that income. Cutting those hours promotes discontent and this will begin infiltrating your work force and eventually get to your customer service in some form, especially if they think it is being done so the boss can take a trip to Hawaii. Better to know how many hours you want them to work in advance and hire based upon their agreement to meet those hour requirements. I agree, labor cost goals are critical and they should be monitored and planned, but we are talking about the lives of people..not just labor costs. Been in restaurant business for 25 years. I like this series of videos a lot.

    • @Therestaurantboss
      @Therestaurantboss  10 років тому +13

      john mutchka, I applaud you for taking your employees incomes so seriously. We need more owners like you in the industry. Obviously, our intentions are to give employees as many hours as possible. What I was trying to say, and could have done a better job, is what you just said. Don't over staff and plan to cut, but when it is time to cut, on a slow day or end of the night, make sure they get out ASAP and don't hang around. I usually ask if somebody wants to get cut, there is always somebody who wants to get cut early! So glad you enjoy the videos, so many more exciting one to come!

    • @johnmutchka7272
      @johnmutchka7272 10 років тому +2

      I agree 100%. And you're right, there is always that person who has plans and wants out early! thanks for the response.. will be looking for more of your videos! great job on all that I have seen.

    • @davidb.9786
      @davidb.9786 7 років тому

      bullshit....it will make them respect the fuck out of you..."gawd this guy means business" ...Nothing garners MORE respect

    • @Kris-nk9mz
      @Kris-nk9mz 7 років тому +14

      David Butts, No way! You're the EXACT person I would never work for. I learned this lesson a long time ago and it's never been so true and that is... respect is a 2 way street. Good luck working by yourself.

    • @ryanjones1799
      @ryanjones1799 6 років тому

      john mutchka i Walt to open m'y Own takaway can u help

  • @tinuwak
    @tinuwak 6 років тому +24

    Try to find ways to boost your sales instead calling off your staff. They may want to go Hawaii too😎

    • @Therestaurantboss
      @Therestaurantboss  6 років тому +1

      Exactly! But until you boost sales, you need to lower your costs. Hawaii sounds amazing!

  • @andreadup88
    @andreadup88 8 років тому +12

    Simple rule to follow... track sales projections carefully, then creat a labor budget... its simple, you can't write a schedule with out a labor budget. For my restaurant personally we do about $8k -$10k a day and our labor goal is 16% total labor for hourly team members.

    • @Therestaurantboss
      @Therestaurantboss  8 років тому

      Yep it is pretty simple...if anybody needs a tool to help them with this, please visit therestaurantboss.com/software

    • @snk782
      @snk782 7 років тому +5

      10k per day ?? Can I marry you?

  • @antoniodossantos5960
    @antoniodossantos5960 2 роки тому +1

    Thanks Ryan🌎 Greetings from Colombia. The Venezuelan Immigrant writer, ecologist, entrepreneur 🇻🇪

  • @sokhi05
    @sokhi05 3 роки тому +8

    Well,you are talking from a point of view of owner, rather motivate your staff and build strategies to increase sales and yup keeping a check on cost is of utmost important but the employee also want to take his family to Hawaii. Employee retention is also important. Remember together we can make difference.

    • @moshahine8138
      @moshahine8138 Рік тому +1

      You are absolutely right . Once they get less they leave . Rehire and train will will cost more . Also the wastage resulted will be way more I believe

    • @sokhi05
      @sokhi05 Рік тому

      @@moshahine8138 Exactly

  • @bkv5591
    @bkv5591 10 років тому +7

    I'm trying to get my management team to do exactly what you spell out and wanted them to view this but the Hawaii comment ruins the whole piece..."so now our owner just wants us to watch costs so HE can go to Hawaii."

  • @tramainebanks8194
    @tramainebanks8194 3 роки тому +1

    I love you, i am a restaurant manager for McDonald's and need this knowledge daily. Thank you ,

    • @Therestaurantboss
      @Therestaurantboss  3 роки тому

      AWESOME!!! If you really want to take a deep dive into restaurant management, check out my Restaurant Manger Certification program at therestaurantboss.com/programs/rmc!

  • @tw2800
    @tw2800 2 роки тому +2

    If you want to save labor costs look at ways to reduce employee turnover. If I'm scheduled to work a shift and I've built my schedule and budget around working those hours and you call me to tell me you don't need me to come in to work....I'm gonna look for another job...some things are automated and its ok to turn a machine on and off at your whim...people are not machines...hrs on your budget....when you start thinking of employees like numbers you can manipulate you will soon find that if you are not meeting your employees needs they will leave you and find a new employer....the money you lose from unsavory employer practices resulting In high turnover will be much greater than your $10 a day....you might find yourself in a sleeping bag on a beach in Hawaii when you lose your restaurant....bad idea 💡 😕

    • @Therestaurantboss
      @Therestaurantboss  2 роки тому

      Thanks for the comments, this video was posted 9 years ago. We were in a very different economy then. It was very expected and common that FOH team members were often looking to work less hours and happy to leave early on certain days. Things are very different now and I agree with you more than ever. We are going to film an update to this video and link over to it next week. Thank you so much for sharing your thoughts.

  • @TuanTranV
    @TuanTranV 6 років тому +1

    The point that you control your staff or following your business then you will know the trend from monday to sunday so you can organise your staff and don't need to call staff off.

    • @Therestaurantboss
      @Therestaurantboss  6 років тому

      Exactly! You have to know your numbers so you act proactively vs reactively.

  • @paradigmwolf4694
    @paradigmwolf4694 8 років тому +9

    Interesting idea. Definitely woke me up a bit more to ways I can improve business. And you gave it for free.
    Thank you.

    • @Therestaurantboss
      @Therestaurantboss  8 років тому

      +Paradigm Wolf There are always ways we can improve, the trick is doing it, now knowing it. Let me know if I can help.

  • @neesh1234567890
    @neesh1234567890 3 роки тому

    Thank you dear. Can you tell me pls what is the difference between plate cost and inventory food cost..and for what reason we use inventory food cost

    • @Therestaurantboss
      @Therestaurantboss  3 роки тому

      Hi Nachaat! I have a very old video, but a very good one on calculating food cost where I talk about this exact subject. Check it out: ua-cam.com/video/QpYX4GfSiHA/v-deo.html

    • @neesh1234567890
      @neesh1234567890 3 роки тому

      @@Therestaurantboss thank you dear.,,,🌹🌹

  • @abdallasatti4029
    @abdallasatti4029 10 років тому +3

    Thanks, great information. I'm currently in the planning phase of opening up a restaurant and will be contacting you in the near future.

    • @Therestaurantboss
      @Therestaurantboss  10 років тому

      I just saw your comment, how are the restaurant plans coming along can I help?

  • @animated6875
    @animated6875 9 років тому

    can you pls tell me how much capital is needed to open a medium size restaurant

  • @dustinwirebaugh
    @dustinwirebaugh 5 років тому +1

    Good info...loving your videos right now.

  • @joeadams9675
    @joeadams9675 3 роки тому +1

    Just make sure you don’t focus more on labor than your people. That short staffed shit is cool some days but no t every day so it’s important not to take it too far

    • @Therestaurantboss
      @Therestaurantboss  3 роки тому

      Hey Joe! Have you watched the last video few I released? Especially the ones on service fees vs raising prices. I address this specific topic!

  • @manniewray6263
    @manniewray6263 7 років тому

    Wow this makes sense. I'm currently opening up a bar and grill restaurant in Dallas Texas.

    • @Therestaurantboss
      @Therestaurantboss  7 років тому +1

      How is the opening going, I am going to be Austin next week.

    • @manniewray6263
      @manniewray6263 7 років тому

      I haven't opening it yet, due to some circumstances...

  • @gardencookeat22
    @gardencookeat22 3 роки тому

    So my poor worker is shorted pay for the week. But one day I may go hawaii. Love the time tracking mechanism tho.

  • @sunlee3555
    @sunlee3555 6 років тому +1

    How many restaurants do you run, if you don mind me asking?

    • @Therestaurantboss
      @Therestaurantboss  6 років тому +1

      Hi Sunny! I do not currently run any restaurants so I can operate my businesses (therestaurantboss.com and clickbacon.com). However, I have successfully run 4 restaurants in the past. You can learn more about me here: therestaurantboss.com/about/

  • @dustinwirebaugh
    @dustinwirebaugh 5 років тому +2

    Liked and subscribed!

  • @billybobn11
    @billybobn11 5 років тому +1

    Great video

  • @karinaramirez5331
    @karinaramirez5331 8 років тому

    One thing I've noticed is that they keep scheduling according to projections even though actual sales based on d prior year are way off and we end up over staffing like 15 servers for a 4k a.m shift..how can i make them understand that they need to look at past sales as well...

  • @donnapalomino6071
    @donnapalomino6071 5 місяців тому

    Love this!

  • @rameshrajat8566
    @rameshrajat8566 6 років тому

    Hi sir..thanks for making videos on rest managing skills. Would like to know, is there a software to track all the details like food cost labour cost etc.....

    • @Therestaurantboss
      @Therestaurantboss  6 років тому

      Lots of different options, our company has one called BACON. clickbacon.com

  • @frankhassan3828
    @frankhassan3828 9 років тому

    Thank you Ryan, you are great. I love your videos

  • @GT500Nick
    @GT500Nick 8 років тому

    Wow, awesome. My fiancé and I are planning to open a restaurant this year and I'm learning a lot. Would love to pick your brain and bounce ideas off you!!

    • @Therestaurantboss
      @Therestaurantboss  8 років тому +1

      Please take a look at my website and when you are ready there are multiple ways we can make this happen.

    • @najoo7osam
      @najoo7osam 3 роки тому

      How's your business going?

  • @brenadavis8131
    @brenadavis8131 2 роки тому

    I came here through Escoffier culinary school

  • @Jordanhearin
    @Jordanhearin 10 років тому +4

    Hey man, I love your videos. But, isn't the best way to lower labor % is to build sales??

    • @Therestaurantboss
      @Therestaurantboss  10 років тому +8

      jordan hearin I once worked for a man that said Volume fixes everything... I can't say that I agree. If you are at a point where volume is so low, that even on a skeleton staff your % is too high, then yes you need more volume. But just focusing on growth is a recipe for disaster. You MUST have you systems and efficiencies in place before you can focus on aggressive growth!

  • @jorgejimenezm.2396
    @jorgejimenezm.2396 9 років тому

    Thank you Ryan, you are great.

  • @augustoliver2345
    @augustoliver2345 8 років тому

    Great video, thanks!

  • @gowthamseeralan8692
    @gowthamseeralan8692 7 років тому

    hai chef. I am about to start a restaurant in south India. please guide me .

  • @stevenlamb2142
    @stevenlamb2142 4 роки тому +1

    Labour cost is the biggest outlay!

  • @jonathantran8622
    @jonathantran8622 7 років тому +3

    Who's gonna watch your restaurant when you're in Hawaii?

  • @tara20tara20
    @tara20tara20 8 років тому

    wow, it made sense...love it

  • @vasantasp
    @vasantasp 4 роки тому

    My Staff dont work when Owner is not around so how to hear what they talk when I out of restaurant

    • @Therestaurantboss
      @Therestaurantboss  4 роки тому

      It's not so much what they are saying as what they are doing.

  • @junaidnoman5522
    @junaidnoman5522 8 років тому

    Love the videos.

  • @MayurPatel1980
    @MayurPatel1980 7 років тому

    Thanks for the video...

  • @deub2005
    @deub2005 8 років тому +2

    thank you boss awesome

  • @boctalition
    @boctalition 9 років тому

    You are brilliant

  • @dustingofthedecks
    @dustingofthedecks 3 роки тому

    All well and good, then on your quiet day when you have laid people off, you suddenly get slammed, and customers have to wait too long, then they don’t return!!! Answer me that one?

    • @spartanofthestate9803
      @spartanofthestate9803 3 роки тому

      They probably also do other bad practices, like skimp on ingredients and anything else they can to drive the customer away.

  • @冠勳呂
    @冠勳呂 5 років тому +3

    I have been working in the restaurant as cook/ chef for 8 years , you are the reason why this Industry is hopeless. Your video is just talking about how the owner can save money to go to vacation by exploit the labor. Cost down by cutting labor’s hours or wage/H. Shameful!!!!
    Imagine you work in the kitchen , 12 hours a day , no holiday , work in the weekend , stand 12 hours , only eat leftover employees meal, kitchen is 104 F hot, you are sweating like taking showers , stress, chef is yelling. And what you get pay is 12-14 dollars / h and no 401 k and no insurance , no other benefits, I am talking 90% of restaurant in USA. That is why no people want to do it . Think about it , the people who work in the kitchen and passion at cooking , expecting they can open their own restaurant , how can they open their own business with such low pay? Tell you what ? They can’t even pay their bill!!!! That is why so many people leave this industry, your labor is the most important asset , not the ingredients, not the table or chair , not facilities, without those people , you can’t do shit .i have seen great cook , who has passion and experienced, working in Michelin star in NY, only get paid 15 dollars per hour and no benefit, this is so sad. I can’t even understand how can some people start to say “as long as they like their job, that is fine “ or “ proud of working in the kitchen because of passionate even it pay sucks ...... “
    Hey, you have to know, most of people can’t handle kitchen job. I am talking about real restaurant , not fast food, the restaurant which ask you to cook 20 different things in the same time and everything has to be perfect , perfect speed, perfect temperature , perfect plating.

    • @Therestaurantboss
      @Therestaurantboss  5 років тому +2

      Thanks for the comments. Here is the reality, when you have a defeatist attitude and believe that the world is out to get you, you will always be a victim. I did work in kitchens 12 hours a day, I did work for less than minimum wage. I would come to work 2 hours before my shift and clock out 2 hours after my shift making $5.15 an hour. And I shut up, did my job, learned, grew and got better and better jobs. I educated myself and I am where I am because I always had the attitude that business is designed to make money and if I can help them make money I am more valuable to them. You are right, pay does suck, but here is also the reality. My hours NEVER got cut, other did, but mine never because I was the hardest working person in the kitchen.

    • @spartanofthestate9803
      @spartanofthestate9803 3 роки тому

      @@Therestaurantboss damn I just left a lengthy comment on being the hardest worker and getting my hours cut. I agree with you. Getting $4 over minimum wage on 40 hours and my rents still 45% of my income, it's rough out here. I feel like even after I dehumanize myself for the next 2 plus decades I'll have nothing to show for it. But then there's education.

  • @ryanzehner9223
    @ryanzehner9223 Рік тому

    How do you lower labor cost without losing employees by calling them off to keep a solid staff to avoid employee turnover?

    • @Therestaurantboss
      @Therestaurantboss  Рік тому

      That's the million dollar question, right? Our CoGS are always going to fluctuate but labor prices are never going back down. We just released a video on employee turnover last night. ua-cam.com/video/KRSu_MC79VQ/v-deo.html
      If you want to go deeper, we do a new monthly training topic every month (plus a group Q&A call where you can ask Ryan anything). In January, the topic is employee onboarding. It's the most overlooked, under utilized way of avoiding employee turnover. It's a members only training and you can learn more here: www.therestaurantboss.com/membership
      Dawn - Team TRB

  • @yulizbetharteaga1851
    @yulizbetharteaga1851 6 років тому

    How can tell you never had work outside before?

    • @Therestaurantboss
      @Therestaurantboss  6 років тому

      I am sorry, but I don't fully understand your question. Can you provide more details?

  • @Jordan-tx6kv
    @Jordan-tx6kv 4 роки тому +1

    so the workers get their hours cut while the boss is chilling in Hawaii

  • @poloboy8412
    @poloboy8412 7 років тому

    Zing Zing amazing!

  • @juliandelacruz4516
    @juliandelacruz4516 8 років тому

    I need some help Ryan

  • @goodlife4820
    @goodlife4820 3 роки тому

    Every money saved in labor cost is another money less in income of a staff. If that money saved is for staffs incentive for the end of the year that industry will be better or maybe just continue tranning the staffs because everyone just come and go.

    • @Therestaurantboss
      @Therestaurantboss  3 роки тому

      Training is definitely key! It helps with employee satisfaction & retention.

  • @jerrellbrown1128
    @jerrellbrown1128 11 років тому

    I SEE WHAT YOU MEAN

  • @co5miccharli356
    @co5miccharli356 2 роки тому

    Yeah as the owner you get these things. The manager doesn't.

  • @jonrock5578
    @jonrock5578 6 років тому +3

    Bottom line: Get to Hawaii

  • @shadowbolt7
    @shadowbolt7 Рік тому +1

    That 50$ dollars a day could very well be just as useful to the workers. While i'm not advocating running into the red ink for a business, squeezing employees for every minute and every dollar is NOT a good way to run a business. Calling people in and taking people off the schedule on short notices when the job, their paycheck, is their livelihood is not something to change and fluctuate on a daily basis.

  • @IIrandhandleII
    @IIrandhandleII 4 роки тому +1

    Why not just pay the employees minimum wage? That's like 10 trips to Hawaii.

    • @Therestaurantboss
      @Therestaurantboss  4 роки тому

      If you do that, you will be spending all of your time rehiring employees vs. having the time to to go Hawaii.

  • @kib2675
    @kib2675 10 днів тому

    To be a millionare restaurant owner, or rather, to walk away with a million in your pocket, you start with two millions, and walk away when there is only one left. All restaurants loses money. It is a law of nature. If you charge what it cost, you do not get customer, so you cut corners, until the corners cut you. Your best option is to sell to another punter, before you are closed down.
    Otherwise, know your area, know your target group. Most guests eat out to see other people, not to have a gourmet meal,. Three hours net salary, is the average acceptable for a person in a friendly restaurant . And you do not muck about with schedules, when they are set.

  • @alp.a6419
    @alp.a6419 5 років тому +1

    this is 100% correct , obviously the goal is always to increase sales . I am in business to make money not to satisfy my employees. Yes we need to look out for them and pay them good , but we cannot keep them at work if it gets slow . In regards to your vacation comment , its true whats the problem owners , managers deserve vacation also not just employees!!!

    • @Therestaurantboss
      @Therestaurantboss  5 років тому

      Thanks for the comment, this video is less about right or wrong, obviously we want to give as many employees as many hours as possible as you said, this is about controlling things. Staying on top of the numbers, what is actually happening in your restaurant. It is amazing how small changes make a huge difference over the year, then you multiply that year over your career and it can he hundreds of thousands in added profits.

    • @spartanofthestate9803
      @spartanofthestate9803 3 роки тому

      Sheesh, entitled much?

  • @shanakadesoyza6258
    @shanakadesoyza6258 8 років тому

    👌

  • @jayrai9801
    @jayrai9801 Рік тому

    Labour cost shouldn't more then 14 percent

  • @ajgibson100
    @ajgibson100 2 роки тому

    looking like you came off of superbad

  • @MoonMan12001
    @MoonMan12001 6 років тому

    Theorical ??

  • @Enluv6936
    @Enluv6936 10 місяців тому

    The math thou~

  • @malavalla
    @malavalla 5 років тому

    quickly its 3 minutes

  • @nesiansides7133
    @nesiansides7133 3 роки тому

    Hawaii business trip write off on tax, and the business associates is your family... Which they are 😎

  • @heidijones3261
    @heidijones3261 8 років тому

    this is alsome

  • @FoxWeddings
    @FoxWeddings 3 роки тому

    So freaking vague...

  • @tashawaters89
    @tashawaters89 8 місяців тому

    Managers adjust my hours manually. They shave off money from my paycheck....

    • @Therestaurantboss
      @Therestaurantboss  7 місяців тому

      I'm so sorry to hear that :( Definitely not what should be happening.
      -Dawn, Team TRB

    • @tashawaters89
      @tashawaters89 7 місяців тому

      ​@@TherestaurantbossThank you, you're right. (Yikes, cutting workers when it's slow makes you unreliable as an employer. May God have mercy on your business.)

  • @enniosavini6591
    @enniosavini6591 5 років тому

    I doubt a small restaurant owner will ever go to hawaii

  • @keimoedwards7857
    @keimoedwards7857 7 років тому

    Hi Ryan, I been following your content a few weeks and I am 3months in running a restaurant in Jamaica. I need your help. what's your email

    • @Therestaurantboss
      @Therestaurantboss  7 років тому

      what do you need help with? You can schedule a strategy session here: therestaurantboss.com/start-here-a/#strategy_session.

  • @robertdixon6536
    @robertdixon6536 3 роки тому

    So I see your sales are weak. Strengthen sales and you won't need to be "Penny Annie" anymore.

  • @JS-bg8rq
    @JS-bg8rq 9 років тому +1

    what is "theorical"? lol, you mean theoretical, my friend.

    • @Therestaurantboss
      @Therestaurantboss  8 років тому

      +jordan sabo I never said I was great at spelling.

    • @JS-bg8rq
      @JS-bg8rq 8 років тому +1

      Pronunciation not spelling...Couldn't take the vid seriously after hearing that. People, here's the gist of the video: watch your numbers and you can go to Hawaii

    • @paradigmwolf4694
      @paradigmwolf4694 8 років тому +1

      +jordan sabo "couldn't take the vid seriously after hearing that"
      As if it matters at all. He is offering free content to help with running a restaurant and you are dismissing the entire video off of one word...
      People always trying to "teach something" to someone that's giving away knowledge.

    • @1NeoSoulChild
      @1NeoSoulChild 8 років тому +1

      So why call out the mispronounciation if you knew. #focus

  • @joseluisgomezdecena
    @joseluisgomezdecena 8 років тому

    B.s.

  • @MdHussain-fx7cn
    @MdHussain-fx7cn 5 років тому

    bro I watch ur videos sometimes
    but u do sound like an academic and wanna sell something, sorry didn't mean to be rude

    • @Therestaurantboss
      @Therestaurantboss  5 років тому +1

      Sorry you feel this way. I tend to get pretty passionate about the subject and perhaps that's what you feel is "salesy". It's your choice to watch or not, however.

  • @Shuayb_ibn_Saleh
    @Shuayb_ibn_Saleh 9 років тому

    hey very good advice and I'm not trying to hate but it will be more professional and it will seem like you know what your talking about if you weren't reading and actually looking in to the lens of the camera and talking to the viewers.

    • @Therestaurantboss
      @Therestaurantboss  9 років тому +2

      Thanks man, I don't read off anything and do my best to look at the camera. This video was filmed 3 years ago. We get better everyday.

    • @mrthompson85
      @mrthompson85 8 років тому

      +Awake And Aware Reports - a little grammar studying would make the difference between you 'knowing your shit' and 'not knowing you're shit'.

    • @Shuayb_ibn_Saleh
      @Shuayb_ibn_Saleh 8 років тому

      Hahaha thanks for the heads up

    • @Shuayb_ibn_Saleh
      @Shuayb_ibn_Saleh 8 років тому

      But man I wrote that last year in November

    • @jamespecora4906
      @jamespecora4906 4 роки тому

      The Restaurant Boss gotta love people to watch your free content and then complain 😂

  • @davidb.9786
    @davidb.9786 7 років тому

    you dont know if a 33% labor cost is good or bad?? lmao.....

    • @EthanJayy
      @EthanJayy 7 років тому +1

      depends on the business. Some restaurants in casinos actually allow up to 30-35% in labor cost. Small business tho would have lower. So thats what he meant pretty much by her doesnt know if its good or bad.

  • @etaheverythingabouthospita6899
    @etaheverythingabouthospita6899 3 роки тому

    bullshit idea. this is not a way do business.

  • @amerpk5430
    @amerpk5430 7 років тому +1

    poor advice

  • @therestaurantguru6890
    @therestaurantguru6890 8 років тому

    Good video, Ryan!

  • @bkv5591
    @bkv5591 10 років тому +9

    I'm trying to get my management team to do exactly what you spell out and wanted them to view this but the Hawaii comment ruins the whole piece..."so now our owner just wants us to watch costs so HE can go to Hawaii."

    • @Therestaurantboss
      @Therestaurantboss  10 років тому +1

      Ha ha....yeah sorry about that... It is just meant as an example to show how a few pennies here and there can really add up!

    • @spartanofthestate9803
      @spartanofthestate9803 3 роки тому +1

      "Rick Rolled"
      -this message brought to you by a 5 year pawn in the food service industry.