Start by analyzing your current labor cost percentage. Calculate your labor cost as a percentage of your total sales by dividing total labor costs by total sales and multiplying by 100. This will give you a baseline to work from and identify areas for improvement.

Review your scheduling practices to ensure optimal staffing levels. Analyze historical sales data, peak hours, and customer traffic patterns 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.

Implement labor forecasting methods to accurately predict staffing needs. Utilize historical data, seasonal trends, and upcoming events to forecast staffing requirements. This will help you schedule the right number of staff members and reduce unnecessary labor costs.

Cross-train your employees to perform multiple tasks or roles within the restaurant. This flexibility allows you to schedule fewer employees without sacrificing service quality. Cross-training also enhances employee skills and engagement.

Streamline operational processes to improve efficiency and reduce labor hours. Analyze workflows and identify areas where tasks can be streamlined, automated, or eliminated. Invest in technology or systems that simplify operations and reduce the need for excessive manual labor.

During slower periods, adjust staffing levels accordingly to avoid unnecessary labor costs. Use sales forecasts and historical data to determine the minimum staffing required to maintain service standards. Consider implementing flexible or on-call staffing options to minimize labor costs during slower shifts.

Monitor and control overtime hours to avoid unnecessary expenses. Set clear guidelines for overtime approval and monitor employee schedules closely. Consider implementing shift swapping or utilizing part-time employees to cover additional hours instead of relying on overtime.