Free Guide: 4 Steps to Control Labor Costs in Every Restaurant

Refresh your labor cost control strategy with this brand-new guide. 

It's well understood that labor costs are a top concern for restaurant brands today, but oftentimes, operators are largely unaware that labor overspend has crept into their operation. Paying wages is an unavoidable expense of any business, but restaurants often have inflated labor costs that hide in different areas of the operation.

When left unchecked, overspending on labor can quickly turn into a pattern, permeating throughout your operation and going undetected in audits. For instance, missed meal breaks are a common source of unwanted, unexpected paid time, but they can be easy to dismiss or overlook altogether.

As time goes on, these sneaky areas of labor overspend can compound quickly, especially for brands with multiple locations, and hundreds or thousands of employees. Additional challenges like high turnover and staffing shortages add to the complexity, and the result is a loss of control over your labor spending. When wages inevitably rise, restaurants with inflated costs will struggle to respond and adapt. Labor cost control aims to eliminate unintended or unexpected spending on labor, without compromising quality.

Our newest guide, Navigating Labor Cost Control: A Smart Framework for Restaurant Operators, was developed specifically to help fast-growing restaurant brands learn how to evaluate their current cost control strategies and take actionable steps for growth. 

For restaurant brands that want to grow, this guide will give you a solid 4-step framework to understand your labor costs, assess your current state, and take action to control your costs. You'll also learn about key metrics you should measure to keep your labor costs under control as your business grows.

4-step framework for labor cost control: 
1 - Learn to identify where labor costs are hiding 
2 - Assess your current state of cost control  
3 - Execute proven strategies for cost control
4 - Measure, monitor, and improve to grow and succeed

Effective cost control is an ongoing process that requires analyzing and monitoring data, and adjusting the operation as needed. To create longevity, restaurant brands can empower employees across the organization to take ownership and target different areas to find savings and boost their bottom line. By identifying and eliminating labor overspend, operators can take back control of their labor costs and allocate that funding to other business initiatives that will boost profitability.

Investing in cost control measures is not just a smart move; it's a critical component of sustaining a successful restaurant operation in today's competitive landscape. As consumer preferences evolve and economic conditions fluctuate, the ability to effectively manage your labor expenses is more critical than ever.

By instilling a mindset focused on efficiency, accountability, and innovation, restaurants can be prepared to navigate challenges and capitalize on opportunities for growth. Focus on empowering employees at all levels to take ownership of cost-saving initiatives and foster open communication channels to identify areas for improvement. As the market changes, you can continuously adapt your strategies and lay the foundation for enduring success.

Navigating Labor Cost Control is packed with best practices and actionable strategies to help you manage labor costs across all of your restaurant locations. Get the guide now to access practical solutions that will drive profitability in your stores.