Labor is one of the determining factors when it comes to running a restaurant. When you fail to track your labor cost, it may cause many issues in your restaurant and end up eating your margin faster than your payroll. Moreover, labor costs are not consistent, and they fluctuate from time to time, and this usually depends on dry spell seasons and holiday seasons.

When you are not careful, you might end up having fewer waiters and waitresses during the peak season, and this can be a considerable inconvenience. You are at peace when you know that you will be able to handle the number of employees that you have and you will also be able to manage your restaurant’s wages. In this article, we are going to talk about ways you can lower restaurant labor costs.

Tips for tracking labor costs

1. Rethink your schedule regularly

It may seem more straightforward to keep your employees on a set schedule for months. Still, it is a good idea to reevaluate your work schedule regularly to avoid overbooking your employees. Your restaurant’s traffic will fluctuate from day to day, week to week, and month to month. Although employees sometimes appreciate a consistent schedule, it is not ideal for your company.

2. Schedule based on sales

You might be tempted to keep the same number of employees to carry out the same shift, but this may not benefit you and your restaurant. Your organization needs employees to choose from and employees you can change during transitions. Mainly this helps you out when you have a lot of customers. Make sure you have enough employees to allocate different employees in various sectors.

3. Utilize your employee’s strengths.

Individual strengths and weaknesses of your employees emerge over time. For example, one server might be an expert at handling your busiest night of the week. Another person might be good at upselling. Recognize these abilities, reward them and put them to use.

4. Make the scheduling process more automated.

Time clocks and paper schedules are a thing of the past, and managing employee schedules does not have to take up much of your time. Shift planning software can help you save time and better understand your labors in real-time, especially when integrated directly into your POS system. There is a lot you can do to run a more efficient restaurant business, from weather forecasts to individual employee strengths. You are keeping the preceding in mind.

5. Assign tasks to each payroll log.

It might be unhelpful for you to know how your employees spend their time. For example, putting away new inventory may be more time-consuming than you realize. Tracking your employees spending budget helps you to know which employees are spending a lot and who is not.


This particular article will help you know how you can lower the labor cost in your organization. Make sure you put them into consideration so that you can be able to save more and be able to pay your employees.