How to Quickly Minimize Labor Costs
There are a minimum number of employees necessary to open a restaurant up for business every day and close it down at night. Anyone else that is generating payroll expense during any particular shift should be there because their presence is in direct relationship to the current shift’s business volume, not because their name showed up on the schedule. Payroll costs are not a hard-and-fixed expense. They can and should be as variable as the number of covers on any particular day.
Understanding key ratios and effective scheduling principles can bring runaway payroll costs under control quickly and easily. Likewise, understanding how to implement portion control and a variety of other cost reduction methods are an essential part of every restaurant manager’s day-to-day responsibilities.
Labor costs could be as much as 30% of your expenses; TimeForge can help streamline and minimize labor costs through effective employee scheduling.