How to Decrease Your Restaurant's Labor Cost

Managing labor costs is essential for maintaining profitability in your restaurant. This guide provides seven steps to help you decrease your restaurant's labor cost and optimize your staffing expenses.

Analyze Labor Cost and Sales Data
Start by analyzing your labor cost and sales data to identify areas of improvement. Calculate your labor cost as a percentage of sales to determine the current labor cost impact on your business. Evaluate staffing levels during peak and slow periods to determine if adjustments can be made.
Review and Adjust Scheduling Practices
Review your scheduling practices to ensure optimal staffing levels. Analyze historical sales data, customer traffic patterns, and seasonality to create accurate schedules that align with demand. Avoid overstaffing during slow periods and consider implementing flexible scheduling or cross-training staff to maximize efficiency during busy times.
Optimize Staffing Efficiency
Evaluate your staffing efficiency by analyzing employee productivity and identifying areas for improvement. Train your staff to work more efficiently, reduce idle time, and streamline tasks. Encourage effective communication and collaboration among your team members.
Implement Technology Solutions
Leverage technology solutions to streamline operations and reduce labor costs. Implement a POS system with labor management features, time tracking software, and scheduling tools to automate processes and improve accuracy. Utilize online ordering platforms and self-service kiosks to minimize labor requirements.
Cross-Train Employees
Cross-train your employees to perform multiple roles within the restaurant. This allows you to schedule fewer staff members while maintaining flexibility and service standards. Cross-training also provides employees with opportunities for growth and development.
Monitor and Control Overtime
Monitor and control overtime hours to avoid unnecessary expenses. Set clear guidelines for overtime approval and closely monitor employee schedules. Consider implementing shift swapping or utilizing part-time employees to cover additional hours instead of relying on overtime.
Streamline Operational Processes
Streamline your operational processes to improve efficiency and reduce labor costs. Analyze workflows and identify areas where tasks can be streamlined, automated, or eliminated. Utilize checklists, standardized procedures, and efficient kitchen layouts to optimize productivity.

Time to start cuttin'

Start for free
Join 1000+ professionals organizing their restaurant with Cuttinboard