Calculating and Reducing Restaurant Labor Costs
Opening a restaurant can be an exciting prospect and also a challenging financial endeavor. In a time when supply chain shortages are prevalent and employee turnover rates are high , you'll need to be able to calculate your restaurant's labor costs and adjust your budget accordingly to remain cost-effective. We'll walk you through the different ways of calculating labor costs and provide methods of reducing those costs to help you make the most of your finances. What Are Labor Costs? In a restaurant, labor cost is the total amount of money that is devoted toward paying employees. This is not limited to salaries but also includes taxes and benefits. Average restaurant labor costs are historically high. You'll need to gather the following num