Daily Archives: January 31, 2012

Ask any restaurant owner what one of their biggest concerns are and usually they will reply “labor cost.” Many restaurant owners don’t discover a labor cost problem until it’s too late and been going on for far too long. Only after paychecks have been handed out do most restaurant owners that their labor costs are too high. For restaurant owners, controlling labor costs should be a daily practice. Here are several labor cost control tips that can help you take control of the problems plaguing your cost of labor!

• NEVER use a fixed schedule that is repeated week after week. The weekly or bi-weekly labor schedule is based on a worksheet showing projected daily sales (or customer counts) by meal period. This is used to help determine staffing needs for each department or job category based on how busy or slow the restaurant is expected to be.

• From the schedule, a labor cost budget should be prepared by the restaurant owner that displays the targeted labor hours and labor costs for each day. This is used as a daily labor hour/labor cost target to help keep restaurant owners on track with their budget.

• Be sure to have employees correct their clock-in and clock-out errors as they occur. Don’t wait until later to fix these errors.

• Have a contingency plan for slower than expected sales. Many employees are willing to leave early when it is not busy at the restaurant. Certain employees can be sent home early in the the event that they are not needed.

• Cross train employees so that they can tackle multiple jobs if needed. Having fewer employees that can handle many jobs is better than many employees doing only a few things around the restaurant.

If you as a restaurant owner incorporate these ideas and practices into your day to day routine around the restaurant, you will avoid surprises on pay day, improve your labor productivity, and have a lower overall cost. Then you can thank One Fat Frog Restaurant Equipment later.