The Way to Reduce Labor Costs on your Restaurant

Profit margins are tight in the restaurant business and reducing labour costs is one way to create your restaurant successful. However, laying off employees and paying minimum wage are not necessarily the finest long-term solutions. There are different ways to cut corners and make your restaurant more profitable and productive. Here are the labour cost goals you need to prioritize:

Boost employee performance

Utilizing POS software that contains a kitchen display system will permit you to monitor how well your employees are doing. Simply knowing this should inspire your employees to work harder. By assessing the KDS data, you will know who your best employees are (aka who’ll keep the lines moving through your busiest shifts). Moreover, you will notice whether some of your workers are not pulling their weight, and you will save money by removing these idle workers sooner than later.





And if you will need to hire after this, keep the following in mind…

Retain staff

In 2016, the restaurant turnover rate was 61%. Normally, this costs restaurants $150K annually because of recruitment, training, and productivity loss. However, you can incentivize workers to remain by creating a positive work environment, and clearly communicating your expectations throughout the recruitment and interview process so there are no surprises. Hire people who you believe are a fantastic match, and if there is turnover, conduct exit interviews to learn where you can improve.

Free up wait staff

By implementing self-service kiosks and tablet POS systems in the desk, customers can place orders and pay in their own terms. It follows that wait staff are free to attend for their clients’ needs and make a excellent dine-in experience, which will help create return clients. You will probably need less staff on every shift, meaning that your other workers can look after delivery rather than you having to employ individual drivers. More people served by exactly the exact same number of workers. What could be better?

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Reduce employee theft

You know, workers eating the bread throughout their shift, having their buddies clock for them, pocketing cash from sales… these tiny things accumulate. To prevent workers from”buddy-punching”, put in a fingerprint scanner that requires your workers to really be at work so as to clock in.

Your restaurant POS software will keep track of inventory and sales, but it does not account for thieving. If you realize that profit margins are lower than they ought to be for the amount you’ve sold, or that there is less stock than the POS software reports, you want to have a talk with your staff.

Your employees will need to consume and take breaks, so let them but set clear rules on if this is permitted. Let your employees know that yes, showing up to work late, leaving early, and taking self-imposed breaks all constitute . Some workers truly do not know. Make them aware, and they will be less likely to do it later on.

These solutions may take a little bit of time and investment upfront, but the long-term advantages are worth it. Your restaurant deserves it!


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