Running a restaurant is a costly project. Restaurant's labour cost plays a major role in restaurants’ total costs and can impact and minimize profit margins, so to keep low your labour cost understand how you can limit it without affecting the restaurant's work.
High operating costs play a significant role in the collapse of restaurants which is why it is important to manage their labour costs to maintain profit margins.
Why it is important to keep your labour cost low and how you can manage and control them for your restaurant,
Low returns may lead to budgetary money or may have to eliminate some staff. but that is not the right way. Here In this article, you'll understand how your restaurant’s labour cost will depend on your operations and only you can understand what works best for your business.
1. Keep a record of your labour cost-
Restaurant's labour cost can come up to 45% of your total profits, regularly tracking helps to be able to keep them within the limit. Keeping track of labour costs helps restaurant holders to know the problem areas that are leading to the costs getting high, by finding the reasons and immediately taking informed decisions to reduce them. Task-based salary framework can work surprisingly in controlling labour costs and works as a great catalyst too.
2. Have trained employees-
Well trained staffs do their work more skillfully and productively as they are prone to perform better by minimizing the number of work hours and getting things done in a minimum amount of time. This, in turn, increases functional efficiency and minimizes production hours for your restaurant which in the end causes low labour costs. Cross-training your staff ensures that employees are trained to do multiple tasks so they can help out anytime needed this not only ensures that they have a multitasking workforce but also a workforce that can lead to the success of your restaurant.
3. Divide your workforce into categories-
If your workforce is lumped together under one category, it can be hard to get why restaurant's labour cost are increasing. This way you'll be able to manage which category should be optimized and what expenses need to be cut down instead of uselessly optimizing every category that might be doing perfectly fine.
Dividing your staff into different categories would be like- chefs, waiters, the front end of the house, back end of the house.
Pay type- waged, or compensated pay
Working hours- half time, or fulltime
As this can provide full access to what needs to be optimized and what is perfectly fine.
4. Optimize functions with advanced technology-
It's simple if your restaurant uses the right technology you can reduce the overall restaurant's labour costs by optimizing your restaurant effectively the more proficient your technology is the less labour work is required.
Make sure you use advanced technology software for reservation of tables, online ordering system, billing, etc to minimize your labour functions, efforts and hours. Make use of advanced software systems available for restaurants to maximize your restaurant's productivity. These tasks are easily manageable by restaurant software systems like BTRESTRO
Instead, focus your employees on more productive tasks like making sure customers have a good experience.
Join BTRESTRO now to experience the foremost services for your restaurant management.