Managing Labor Costs in Your Restaurant

Posted on: December 27, 2016 by RMS Hospitality Group

As a restaurant owner, it should come as no surprise to find out that labor costs account for the majority of your expenses each month. In fact, according to the National Restaurant Association’s 2016 Restaurant Operations Report, labor costs make up a third of sales in a typical restaurant. This means that any increases in labor costs can have a significant impact on your bottom line. Therefore, making data-driven hiring and staffing decisions can reduce your unnecessary spending. After equipping your business with a Restaurant Insurance Program, take the following advice for optimizing labor in your establishment as we go into 2017.

Gather data.

Find out when the busiest and slowest times of the day and year are, identify overtime trends, determine when you are traditionally overstaffed, and work to minimize those added and unnecessary staff members during those times.

Prevent over and under-staffing.

Too many staff standing around the dining space can be off-putting to guests, and not enough staff in front or back of the house can lead to bottlenecks and frustrated customers. Analyze your data and make adjustments accordingly, explains the National Restaurant Association.

Streamline scheduling.

Invest in a digital scheduling program to minimize over and under-staffing and confusion. If a change needs to be made, the relevant employees will be notified and coverage can be found if someone is sick or unable to come to work. This streamlined process can save you thousands each year!

About RMS Hospitality Group

At RMS Hospitality Group, we provide insurance for owners of restaurants of all kinds. Our comprehensive packages are written specifically with you in mind to safeguard your business completely. To learn more about our products, contact us today at (888) 359-8390.

Posted in: blog Restaurant Insurance