Monitoring Labor Costs in Your Restaurant

Monitoring Labor Costs in Your RestaurantLabor is one of the largest monthly expenses for any New York restaurant. While employees are the backbone of your success, it’s important to monitor your labor costs to protect your bottom line. Consider the following suggestions for understanding your labor costs and how to make data-driven decisions to cut costs. Next, protect your operation with a comprehensive and custom-tailored NY Restaurant Insurance program.

Gather data.

Making data-driven decisions requires more than just looking at surface level figures. Dive deeper, look for trends in your restaurant, identify peak hours and slow times, and evaluate whether you are over or understaffed for these times.

Too many employees can be off-putting for customers when they have nothing to do or are loitering at the front of the restaurant. On the contrary, not enough employees during the lunch or dinner rushes can cause delays in service, cold food, and unhappy customers. Analyze your data to make staffing and hiring decision thoughtfully.

Stagger staff schedules.

The National Restaurant Association suggests that instead of setting block schedules that have singular arrival and departure times per shift, consider spreading out scheduled clock-ins and outs by about 15 minutes for select positions. This can help eliminate the chance of not having enough employees on the floor.

Simplify scheduling.

Use resources and programs to your advantage. Rather than relying on paper schedules, utilize digital and mobile apps. These can help to ensure all of your staff are on the same page, find coverage for sick employees and create consistent communication between everyone in the restaurant. In addition, these resources help to:

  • Minimize confusion.
  • Allow management to approve changes.
  • Remind employees of their daily schedules.
  • Alert employees of any last minute changes.


About The Rubin Group

At The Rubin Group we know what unique risks the food service industry faces.  We have staff devoted to ensuring that you have the right  Brooklyn Restaurant Insurance Coverage and any other New York Business Insurance coverages you may need.  Contact us at (877) 806-7239 for more information.