How to Manage Labor Costs for Your New Restaurant

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How to Manage Labor Costs for Your New Restaurant

How to Manage labor costs for your new restaurant is an important question for any restaurant owner. This cost is only a small portion of the total budget. However, a good way to manage labor costs is to set a target for each day of the week. This percentage will allow you to adjust your schedule as necessary. For example, if you open on a Monday, your labor cost on that day may be higher than on a Tuesday.

First, calculate the amount of labor that each category of staff costs. Make sure that you factor in supplemental labor that is needed during slow seasons. This way, you can identify specific areas of the budget that can be reduced. For example, if you hire hourly workers for the first time, you should only hire part-time employees. This will allow you to cut down on other costs, such as food and beverages.

Once you have your estimates, calculate the total labor cost for each category of staff. Divide the total cost by the number of hours that each category spends working. If you hire employees for the first time, you may want to consider hiring temporary employees until you can hire permanent staff. Also, take note of the salaries of your employees and the hours they work. Then, look for areas where you can cut the cost of labor.

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