by Don Taylor

"It was a little past the usual lunch rush hour, but the line at the fast-food counter was at least 10 people deep and moving slowly. As I waited my turn, I overheard a conversation between an obviously harried manager and the owner of the business.

"What is it?" the owner asked.

The manager worked his calculator and replied, "24 percent."

"You know we can't live with that. Send somebody home. You won't have a job and I won't have a store if we keep this up. We've got to stay below 22 percent. We've been over this before," the owner growled.

The manager frowned. "Ok, but I really need everyone right now."

The owner shook his head and turned away.

The conversation was not loud, nor was it intended for others to hear. However, I heard every word. I could tell from the tone of this conversation that the focus of this business owner was on managing the numbers, not on taking care of customers.

The owner wanted to hold labor costs below 22 percent of sales. On this day the numbers were coming in at 24 percent. The numbers said there were too many warm bodies standing around.

This little scene was none of my business; however, I did want to take both the owner and manager aside for a little chat. You see, as a customer, I didn't want anyone sent home. In fact, I wanted both the owner and manager to pitch in behind the counter and speed up the service. I was willing to increase sales in return for food and drink.

Unfortunately, this owner was so obsessed with his numbers that he had forgotten where the numbers came from in the first place. Now don't get me wrong. I believe in management based on facts, not feelings. I also know that for many fast-food franchises, controlling labor costs is critical for survival. This is true for most businesses. Typically, labor expenses - salaries, wages, benefits - is the highest category among operating expenses.

No, I'm not saying to ignore your numbers. Rather, I want you to understand the importance of managing priorities. Taking care of customers must come first.

In a recent customer-service seminar, I asked the business owners to define the term "customer." I got the usual answers: "people who come to us with needs," "anyone who comes into my store" and "everybody."

I even had a bright owner who defined customers as "the only reason I'm in business." However, the most thought-provoking answer came from an obviously disgruntled owner who quipped, "Customers are an unwanted by-product of running a business." He did get a laugh from the other owners.

I don't know whether this owner was serious or not. However, I've seen a few businesses who treated their customers in just that manner. Usually, when customers feel they aren't a high priority, they take their business elsewhere.

If it had been appropriate, I would have encouraged the owner and manager of this restaurant to jump in and help serve customers. Sales would increase, labor costs as a percentage of sales would go down and most importantly, customers would be happier. Keep your customers happy and the numbers may not require as much managing.