How to Control Labor Costs for Your Startup Restaurant

Managing your labor costs is one of the toughest things that restaurant owners have to deal with on a daily basis. You have to find the right balance between how much you’re going to spend on your workers and making sure you have enough people serving your customers. 

The food service industry norm is to spend 20 to 25 percent of your sales on labor cost. Spending lower than this would compromise quality customer service, but if you go higher than this, you’d risk going over your budget and having idle restaurant staff. If you can lower your labor costs and combine it with efficient tax planning, you may be able to increase your profit margin and help your business grow more. You can have a better grip of your labor costs by following these tips.

Control Turnover RateCompared to other private businesses, restaurants suffer from a higher employee turnover rate, owing to the high number of seasonal, part-time and teenagers working in them. And this turnover rate could end up…