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Managing Restaurant Labor as a Percentage of Sales

A practical guide for turning a traditional restaurant cost center into a profit margin advantage
employees looking over sales numbers
In this article

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In this how-to guide


  • How and why to start viewing labor costs as a percentage of sales
  • Practical tips for setting labor targets and building schedules around forecasted demand
  • How to adjust labor goals to benefit your business
  • Using technology to manage labor as a percentage of sales efficiently

Introduction

Restaurant profit margins are notoriously thin, with the industry average sitting between 3%-5%. In order to be successful, restaurant owners and operators are tasked with finding ways to extend those margins as much as possible while dealing with a wealth of expenses and overhead costs. Among those costs, labor is one of the most significant. Not only are restaurant labor costs on the rise, but many restaurants are understaffed. Effective labor management has never been more important.

Managing your labor spend is crucial for maintaining and growing profit margins. Instead of viewing labor strictly as a cost, we're going to show you how to use it to increase revenue without sacrificing customer service. In this guide, we cover how to not only manage labor spend effectively, but how to view it as a percentage of sales so you can use it to drive profit.

In this how-to guide

  • How and why to start viewing labor costs as a percentage of sales
  • Practical tips for setting labor targets and building schedules around forecasted demand
  • How to adjust labor goals to benefit your business
  • Using technology to efficiently manage labor as a percentage of sales

Guide to Labor as a Percentage of Sales Download

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Mike Armstrong
Mike ArmstrongContent Manager

Mike is a versatile writer and marketer with over ten years of experience in SaaS content marketing. His work includes web copy, blogs, white papers, guides, and more. Mike lives in Chicago and is an avid fan of the Cubs, Bulls, Bears, and Blackhawks.

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