Thirty Percent of Revenue…Give or Take.
- On average, restaurant labor costs are 30% of revenue.
- Costs vary by restaurant type. Certain fast food restaurants can achieve labor cost as low as 25%, while table service restaurants are more likely to see labor in the 35% range
- State minimum wage differentials and differences in tip credit allowances (toward minimum wage) affect the labor cost percentage
- Delivery adds a layer of complexity to labor operations, especially with driver time in-store vs driver time on the road, pay-per-mile, etc.
- Labor is divided between back of house (BOH) and front of house (FOH)
- BOH: staff making the food (chefs, etc.); FOH: staff serving the customers (cashiers, wait persons, etc.)
- In many states, FOH labor is less costly than BOH labor because many FOH staff is expected to earn tips
Amassing Labor Data…A Major Role of Your POS.
- A good POS takes customer orders, accounts for every sales dollar in and every sales dollar out, and accounts for staff work time.
- A GREAT POS adds immense additional value by amassing and aggregating every facet of labor data so it can be harnessed in myriad ways
All-Inclusive Labor Reporting…Yep; Another Facet of Your POS.
- As a valued business partner, your POS provider should provide full-featured, secure cloud-based, on-demand labor reporting
- By undertaking the arduous task of compiling disparate raw labor data and presenting it in formats that include in-depth and ”10,000 foot” native/patterned/comparative/graphical outcomes, your provider can demonstrate its commitment to your on-going success vis a vis labor cost containment and ongoing guest satisfaction
Holistic Labor Cost Monitoring…A Great POS Makes the Complicated Simple.
- The built-in ability of your POS to amass a trove of data-driven labor metrics AND show it in data-informed ways allows for real-time, on-the-spot adjustments that are both meaningful and measurable
Labor Forecasting…Via Sales Forecasting!
- Historical, comparative smart sales data via on-demand, secure cloud-based POS reporting can greatly assist with labor forecasting
Best-of-Breed Integrations…Seamlessly, w/Top Tier Scheduling Providers.
- Seamless integration with the POS
- With the POS becoming the “hub” & the POS provider doing the “heavy lifting”
- Real-time data-driven and data-informed metrics via secure cloud-based app
Cost Containment…Innovation in Hardware, Software & Services.
- Self-Serve Kiosks
- Online Ordering (custom designed by your POS provider & natively integrated with the POS…not 3rd party!)
- Delivery Toolkit (a comprehensive, yet simple-to-use, app that streamlines many facets of delivery)
- Call Center