3 Ways to Cut Restaurant Labor Cost

Esakki | July 23 - 2018


Regardless of size and geographical location, restaurants ubiquitously face several problems related to employees, especially costs. The restaurateurs have to spend a major part in labor cost from their monthly budget. You should have a balanced employee management system so that you can handle your restaurants’ day-to-day operations smoothly. Take advantage of technology and also consider the following three ways to reduce labor cost:

Prevent Employee Attrition

Employee attrition would be the major problem in many private organizations. Restaurants are no exception. Handling the absenteeism or attrition in the restaurant is no easy. If a waiter takes uninformed leave on a busy day, it would be tough for restaurant managers to handle the situation at the restaurant. So, improve your hiring process and recruit people who can fit your business model. However, you should also adopt an AI-powered technology that will allow you to manage performance index of your employees and get a clear picture of your employees’ leave plans and turnover rate. There are a few cases where you can control things through employee boosters and strategized scheduling.

Boost Employee Performance

1. Hand Tools

It is more important to find ways to simplify your employees’ tiresome tasks. Such tools will empower your restaurant staff, speed up all processes, reduce energy consumption, improve efficiency, and boost productivity. For example, if your waiters are running between dining floor and kitchen to manage orders, equip them with an eminent waiter app to send orders and related updates automatically to the kitchen to process food preparation. Likewise, for delivery persons, they may find it difficult to locate customer places. Therefore, it would be helpful if you provide them with a GPS-enabled delivery app that will allow you to track your delivery boys and notify your customers of their order status.

2. Improve Training

You have to train your staff or labor to perform their duties in a much better way. A well-trained person can perform better and give the expected output. While doing so, you can teach them the smarter way to finish they daily tasks. Besides, educating your employees about the restaurant technology you use at your restaurant. If they understand the usability of the applications, they can make use of it efficiently that will save time and improve the efficiency of the employees. You as a business operator can gain more out of your investment.

Strategize Scheduling

Proper scheduling is one of the key factors that influence labor costs. You cannot reduce the staff count or even overstaff your restaurant. At the same time, you should also meet your customer expectation. Such pressing issues can be alleviated with smart scheduling. With restaurant management software, you can handle such scheduling eminently and delegate work equally among the available resources. The well-planned schedule will enable you to manage any situation with a fewer staff.

In this technologically advanced world, you can find a tech solution to handle anything. Therefore, do not prevail in an older way of doing business; find the best restaurant management system that has a separate module for employee management with which you can manage staffing at restaurant and reduce employee attrition, thereby lowering labor costs.