Labor cost percentage;
Welcome to chefs ideas Page
I’m chef ssentongo Geoffrey
Use this common formula to find your labor as a percentage of sales.
1: First, you have to figure out what your restaurants annual revenue is by adding up all deducted for the year.
2: Take the Total labor costs you just found and divide it by your total revenue.
3: lastly , multiply your answers by 100 to figure out your restaurants labor cost percentage.
Idealy, this percentage should be under 30 %. If it’s over 30 % there some other factors that can affect this percentage, like slow business, employees turnover etc.
HOW TO REDUCE RESTAURANT LABOR COSTS?
As a restaurant owner, you don’t want your money to go to waste. Employees labor costs can be one of your biggest expenses. Continue reading to find out how you can reduce employee labor costs.
* Fully utilize your staff:
Here are a few tips for how your restaurant can fully utilize existing and future staff members.
1: Throughly and regularly train staff.
2: Create an employee hand book.
3 : Cross-train staff on other positions.
4 : Re-train staff to sharpen skills and remind everyone of proper procedures.
5 : Schedule veterans and lookies together. On regularly slow business days create a lighter schedule to prevent over staffing.
A Big thanks to all and a heartfelt, welcoming back from long holidays thanks to God to be with you again in the new year 2021.
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