7 Tips to Optimize Labor Costs in Your Restaurant

Having staff to help you run your restaurant is great — until you discover how time-consuming it is to keep track of them.

Archiving their personal information, setting their schedules, then adjusting them at the last minute… It’s enough to frustrate any restaurant manager, week after week.

There’s nothing worse than being short on servers during a sudden rush of customers or paying your employees to stand during a very quiet service.

Adjust your employees’ schedules regularly

But all you need to do is calculate your labor cost percentage , track it consistently, organize your payroll, and automate your scheduling process to reduce the likelihood of this happening.

This will give you peace of mind knowing that you russia whatsapp number data can handle a larger than usual service at any time. With a little organization, you can avoid being over- or understaffed and optimize your labor costs.

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In this article, we share 7 tips to help you optimize your restaurant labor costs :

Assign tasks for each payroll register
Calculate your staff turnover rate
Schedule based on your sales forecast (and the weather)
Play to your staff’s strengths
Automate the staff scheduling process
Invest in a self-service ordering terminal
Enter the new era of catering
Find out in this free webinar how to best prepare many women confront gender inequality for the reopening of your restaurant for the summer season.

What is labor cost?
Labor costs are the percentage of your restaurant’s costs that go toward hiring and supporting your staff . While the ideal percentage of your revenue to allocate to salaries bzb directory and benefits varies depending on the type of business, it’s wise to keep these costs from becoming too high. For restaurants, labor costs average between 35% and 40% of your restaurant’s revenue .

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Fast food chains can achieve lower labor costs, in the 25% range, while restaurants that provide table service are most likely in the 30-40% range. It all depends on the menu and the style of service. Food and beverage costs in the restaurant industry typically range from 28-35%.

 

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