Labor Solutions: 9 Labor Solutions to Cut Restaurant Costs
Let’s face it, restaurant expenses can add up rather quickly. And if you’ve been in the business for some time, you know that the labor cost can be one of the largest expenditures. So, we put together a variety of restaurant tech solutions that can reduce the amount of labor necessary to run your eatery. Read on:
The Purpose of Labor Solutions
The cost of labor is very expensive. This concept is especially true within the restaurant industry. There are so many working parts within a food service business, that it requires many roles to keep it in motion.
Within a restaurant, you have front of house and back of house staff. Both sides of the coin comprise several positions. For example, the front of house staff includes the host, wait staff, and restaurant manager. Amidst the back of house staff, you’ll encounter roles like the sous chef, line cook, and dishwashers.
With all of this in mind, remember that labor solutions are meant to make lives easier. They allow for multitasking and speedy restaurant operations. After a while, these improvements in production can lead to higher profits and longevity within the business.
9 Labor Solutions to Cut Restaurant Costs
Ready to maximize revenue and accomplish more with less? If so, the information below should help you quite a bit. The following digital solutions can help support your budget and enhance the financial health of your restaurant.
Sometimes, the restaurant seating capacity can only accommodate a low number of people. In other cases, some potential customers just aren’t in the position or the mood to dine out. In these circumstances, being available on third-party delivery apps will be one of the best labor solutions of all.
There are two primary ways that delivery apps cut restaurant costs. First, a large portion of your customers will order from home, reducing the need for a large wait staff. Second, many delivery service providers employ their own drivers. So, this is a whole department that the restaurant wouldn’t need to hire.
2. Tableside Devices
Tableside devices allow customers to complete processes without a server present. Consequently, it takes fewer employees to manage each shift. Just think about how much easier it is for the wait staff when they don’t have to monitor every step of the dining process. This is especially important during a restaurant labor shortage.
For instance, tabletop monitors are able to display menus, accept orders, and process payments. Aside from delivering the dishes and checking how everything is, staff members have a much simpler role to fulfill. Plus, they can focus more of their attention on time-sensitive tasks and staff development.
3. QR Codes
Using a custom QR code can lighten the workload for the wait staff. Similar to tableside devices, these scannable images can serve as digital menus. So, customers have a contactless way to view the menu and place orders. Some might even argue that they’re better than tableside devices, as their more sanitary and quicker to use.
It's no surprise that self ordering kiosks are one of the best labor solutions. After all, it practically says in the name that staff are not necessary. With these devices, customers are able to browse the menu types and print a receipt. But in some cases, they can even pay at the kiosk.
Kiosks eliminate the need for wait staff. All you need are the team members who can prepare the food. With this in mind, it's a foolproof way for fast food eateries to cut the labor cost.
5. Restaurant Inventory Management Software
Every restaurant needs to take inventory on a regular basis. However, it can be time-consuming. More importantly, it can lead to higher expenses.
Manual inventory forecasting can lead to errors and miscalculations. There must also be ample time for a staff member to take these counts at least once or twice a day. In doing so, they take time away from other important duties.
With a restaurant inventory app like BlueCart, these processes can be on autopilot. With accurate estimates and automated orders, it's never been easier to manage inventory levels. Book a demo today to learn more about it!
6. Pre-Ordering Functions
If customers can pre-order their meals, your staff will be able to do more with their time. Instead of rushing to get everything done within a strict window, they can space it all out accordingly. With this tip, you won't need additional staff.
Even if you have a limited staff, they can prepare orders based on the pickup time. This way, they can ensure that tasks are complete by their deadline. Rather than prepare dishes in chronological order, they can reduce wait times for customers altogether.
Implementing restaurant marketing efforts is vital. Unfortunately, it can be expensive to hire someone specifically for this work. But when you use online platforms, different practices can be on autopilot. This way, it's not necessary to dedicate one role to such efforts.
Automation tools can come in many forms. Social media scheduling tools, ongoing paid ads, and email flows are just a few popular examples. When you automate these kinds of efforts, they can be done by a current employee. After all, they can probably speak for the brand more than anyone else.
8. Employee Management Software
Utilize a program that can assign shifts to each employee. This way, you never have to risk having an understaffed shift. Even if your labor force is low, there are probably smart ways to delegate shifts to each team member.
For example, if weekends are busier than weekdays, you don’t have to evenly distribute shifts each day of the week. Instead, assign additional shifts for busier periods. With this technique, you won't feel the need to hire more people. This is because the business doesn't require the same number of people for every shift.
9. Consistent Training
It’s cheaper to retain great employees than to search for replacements. Keep this concept in the back of your mind, as it will drastically reduce the labor cost over time. Invest in training materials and resources that’ll help boost the workplace culture.
Employee turnover rates can get very expensive over time. You’ll have to pay for recruiting resources, as well as lose more time without experts while new hires are in training. The longer you can retain the same team, the fewer expenses you’ll have to incur.
Frequently Asked Questions About Labor Solutions
Labor solutions can be absolute game-changers within the restaurant landscape. They simplify daily processes, reduce a major expense, and streamline overall operations. Want to learn a bit more about the topic? See below for additional details:
What Are the Best Labor Solutions to Cut Restaurant Costs?
A few of the best labor solutions to cut restaurant costs include:
- Mobile ordering apps
- Tableside devices
- Self-serving kiosks
What Are Two Ways to Keep Labor Costs Down In Restaurants?
Two ways to keep labor costs down in a restaurant include:
- Using third-party apps to provide delivery services
- Investing in tableside devices to reduce labor for the wait staff
How Can You Minimize Expenses At a Restaurant?
Restaurant owners can minimize expenses by using technology to multitask. For instance, tableside devices allow the wait staff to be attentive to more pertinent tasks. Meanwhile, kiosks are able to accept and process orders without a person present.
What Are Ways to Reduce the Labor Cost?
Foolproof ways to reduce the labor cost are ones that allow the staff to multitask. If you’re able to accomplish more with less, fewer employees will be necessary. Over time, this will cut the labor cost.
What Is a Good Labor Cost for a Restaurant?
The labor cost percentage should never exceed 30%. This means that for every $100 of revenue that the restaurant brings in, no more than $30 should go toward wages and benefits.
Which Labor Solutions Will You Choose?
There are so many labor solutions that a restaurant can invest in. But which ones are right for your business? Whether you’re unsure or ready to begin, Revolution Ordering is here to help! Our advanced suite of off-premise solutions is designed to minimize labor costs and streamline operations. Does this sound good to you? If so, book a demo with us today!