5 Tips on How to Save on Restaurant Labor Costs

Did you know that there are almost 10 million people employed in the restaurant industry in the United States of America? When you’re running a restaurant it is important to find ways to limit your restaurant labor costs. Labor costs are one of the biggest expenses that your restaurant faces.

There are a number of effective paths you can choose to take in order to help with labor costs and remain within the restaurant labor laws. These tips will help you become as successful as possible while also getting the most out of your employees. The good news is that if you’re unsure of where to start, you’ve come to the right place.

Continue reading to learn about the five tips that will help with your restaurant labor costs.

1. Understand the Restaurant Labor Laws

One of the most important things that you need to do when it comes to your restaurant labor costs is having a firm grasp of the restaurant labor laws. Not knowing these laws and remaining compliant with them will cost you thousands of dollars. 

You need to know how many breaks your workers get during their shifts, whether your managers are allowed to take tips, and what the minimum wage is in your state.

2. Cross-Train Your Workers

Cross-training your employees is a great way to cut down on restaurant labor costs because it ensures that there are multiple people that have knowledge and experience doing the different tasks in the restaurant. The more flexible your restaurant team becomes, the lower your labor costs will get.

3. Decrease the Amount of Employee Turnover

Restaurants that experience a lot of employee turnover end up spending a lot more money on labor costs and it becomes a vicious cycle. Training your restaurant staff is expensive when it comes to the time as well as money. This means that it is vital that you appreciate your employees and make sure that they’re treated with fairness and kindness.

Decreasing turnover will save you money on training costs but it will also enhance your restaurant’s reputation in the area as a great place to work. This means you’ll get the best candidates when new jobs do open up on your staff.

4. Evaluate Employee Schedules

Another thing that you should do to cut down on restaurant labor costs is to evaluate the work schedules of your employees. You’ll want to be sure that you’re not overbooking or underbooking your staff for workdays. This leads to too many workers during slow periods and too few when things get busy.

You should also consider investing in these great Frozen Pizza Dough Balls for your restaurant to save time for your employees.

5. Use a Labor Management Software Program

Let’s be honest, there is a lot more to running a successful restaurant than people realize. It is nothing to be ashamed of if you can’t stay on top of everything on your own. A labor-management software program will help you stay on top of things and make sure that you have your team members scheduled for when you need them most.

It helps to boost your efficiency and cut down on extra costs that are holding your restaurant back.

Take Your Restaurant Labor Costs Down a Notch

Lowering your restaurant labor costs might seem like a daunting task, but there are plenty of easy steps to take in order to achieve your goal. Stay on top of your restaurant’s work schedules to ensure that you’re not overbooked or underbooked with team members. You should also stay compliant with restaurant labor laws to avoid hefty fines.

Most of all, do your best to eliminate employee turnover since it is expensive to train new employees. This will also increase your reputation in your local market as a great place to work.

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