How Do You Manage Labor Percent In A Restaurant?
Restaurant labor costs should never rise above 30 percent of the total sales volume. Learning how to manage labor costs can mean the difference between success and failure. More than 50 percent of restaurants fail in their first year of business, and 90 percent of those who make it through year number one don’t make it through their second year. With odds like that, it’s important to be proactive about keeping labor expenses low. Schedule thinly during slow times. Depending on your market, you’ll want the bulk of your service staff to arrive as lunch is starting. If you’re in an area where servers have a low hourly rate, be sure that each server is responsible for opening and closing his own section. Encourage servers to upsell so that you can make more from each guest. The higher your sales are, the more money will be in that 30 percent of budget. Use your hostess to keep labor costs down by seating dinner servers section by section and opening more sections as more servers arrive. Cl
