Labor costs are known as controllable expenses. Upon computing your actual labor cost, you can ideally identify and implement significant ways to cut and improve costs. In most cases, the restaurant business is expected to operate on a crucial thin margin. And to stay afloat during the pandemic, many sacrifices have to be made.
However, there are ways to help the cause effectively. One solution to ease the owner’s financial burden is reducing the labor cost. So, how do you calculate labor cost? According to an article, there are four easy ways to do that.
Determine the total amount your restaurant pays all employees through the specified period you selected.
Determine the restaurant’s total operating costs, not just sales but all marketing, rent, food,drink, and other costs.
Divide the total employee cost by your total operating costs.
Multiply that by 100, and you will have the answer.
The future of the restaurant industry is automation. Investing in automation in your business will effectively reduce labor costs and help you earn. It will also keep the restaurant modern and make the entire operation smooth and efficient.
As a restaurant operator you can reduce the amount of time his staff spend on other tasks like stocking cups, setting utensils and condiments, and pouring drinks. They are self-pour machines, condiments and utensil dispensers available today. It will shorten the lines and keep the restaurant’s flow more efficient.
Have you heard about self-ordering and checkout kiosks? This technology
will reduce the number of employees working per shift. It will help the restaurant be more conducive to fast serving dining venues and keep the process completely automated.
It is right to invest in automated equipment in the food-making process.It will reduce the workforce needed in the kitchen. And while it isn’t reasonable to have it completely automated without the presence of any staff, it is practical to limit the number of staff needed to run a kitchen daily.
