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Labor Cost Is A Budget, Not A Goal

Every restaurant must manage labor costs and payroll. Labor is the second highest cost in a restaurant next to food cost.

Managing those labor costs begins with an accurate sales projection for the upcoming week. Then, an accurate labor schedule is prepared, setting the labor dollars budget for the week.

As the week progresses, each restaurant operator must adjust labor budgets according to actual sales. If week-to-date sales are lagging behind forecasted sales, then the labor schedule must be adjusted accordingly.

The Labor Cost Calculator (LCC) does that for you very accurately. After you complete the sales forecast and labor schedule for the following week, set up your Labor Cost Calculator for that week.

Then at the end of each day, post your actual sales and labor dollars to the LCC. You will know immediately if you need to cut labor the next day. It may tell you that you need to add more hours if your sales are higher than projected.

The LCC calculates labor dollars spent as a percentage of sales. The LCC tells you precisely how much labor dollars you have spent and how much you have left to spend based on your sales.

Learn more . . .

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