Expenses Can Be Overwhelming
As in any industry, labor accounts for a large percentage of overhead in food and beverage establishments. Similar to how product inventory represents a large part of operating costs in the retail industry, food and beverage costs contribute heavily to the operating costs of restaurants.
There does not seem to be much room for profit when you add food and beverage costs to equipment and technology costs, rent, utilities, insurance, advertising and marketing costs, and franchise fees. With all of the expenses of running a restaurant, it is a wonder that there is any room for earning a profit without chasing away customers with excessively high prices.
Using specific labor management practices (qualitative controls, minimized labor costs, inventory controls, and employee procedure controls) can help you to maximize your profit by minimizing your expenses.
Labor costs could be as much as 30% of your expenses; TimeForge can help streamline and minimize labor costs through effective employee scheduling.