June 16, 2024


Science It Works

Labor Cost In The Restaurant Business

Labor cost in the restaurant business is a factor that can make a difference in your bottom line. It is one of the expenses you have to monitor on a daily basis.

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This is my outlook on labor:

What I do is:

I am purchasing labor.

But, there is a connection between management and labor, that a lot of people and business owners over look.

When I had one of my first management courses years ago, the first lesson was:

“your staff is your most valuable asset”.

Since then I had a lot of management でシンガポールの転職活動に成功を and classes, but this first lesson I will never forget.

You can Replace broken equipment or buy new parts.

You have only invested money In these things.

In your staff you have invested more then just money. You have invested in:

  • Training
  • Motivating
  • Commitment
  • Loyalty etc.

All the efforts you have put in there, you hope that they will pay back in:


When I started my own business, I promised my self to keep on doing what I had been doing in my last job as

a shift manager of a big plant. That is to do it by the same first management lesson I had, that your staff is your most valuable asset.

It all starts with the hiring process.

You can take classes in body language, but when you are hiring people and doing this for some time, you know what questions to ask to find out if someone is looking for a job or for a paycheck.

After a while you will learn how to “read” and hire the people who are looking for a シンガポールで就職 and not just a paycheck.

After the hiring it is all about making them clear what you expect and, maybe just as important, what you expect them not to do.

If you make it clear what you expect from someone you hire from the beginning, there can be no misunderstandings later.

But just to be sure make a job description that covers it all.

And with all, I mean things like:

  • why should a cook not do dishes on down time
  • why should a dishwasher not clean up the parking lot,
  • Why should a waitress not clean windows.
  • And I bet you can come up with a few more things.

Years ago I read a sign in a restaurant that said:

“because we couldn’t find robots we had to hire real human beings. Please treat them like this”

I think that says it all.

Every one of us wants to be treated like a human being, and not just be an expense on a managers sheet.

My personal experience is that if you follow these simple steps, you will increase the productivity of your staff.

Off course we still have to make schedules that people do not like and sometimes have to fire people, but if you start with adjusting your hiring procedures, and learn how to “read” people, it can save you a lot of problems down the road.

You are not:

Giving people a job.

Hiring someone.

You are Purchasing labor. But by doing that in the right way you can increase your bottom line, because your staff is more productive.