Labor & Performance

Getting Down to Work

Make the Right Decisions

Because labor costs are your biggest expense, it's vital that you keep the costs of your kitchen, wait staff and other workers as low as possible in comparison to revenue. That requires optimizing the schedules of your employees, so that you are sufficiently covered during peak times, but not overly covered during slack hours. With our help, restaurant and bar managers can maximize profits by tracking labor costs and employee performance so that, if necessary, cuts are made to the staff and not your bottom line.

Labor & Performance

Keep Tabs on Labor Percentages

In addition to tracking overall labor costs, you should be evaluating labor costs by position (wait staff, kitchen crew and management). You can also track labor costs by dividing your employees into salaried and hourly wage groups. This helps you gain insight into your overall labor percentages so you can fine-tune your labor costs — and get them where you want them to be relative to revenue.

Tighten Your Labor Costs

With the help of Revzi’s analytics, you can compare your labor costs (overall and by category) to total revenue, and determine how best to increase profit. Combine a labor cost analysis with an evaluation of each employee’s performance, and you have the knowledge you need to adjust schedules in the most cost-effective manner. You can cut a shift from all employees in a certain category, or selectively adjust work schedules.

For example, if the same employees are working both peak and slow times, then you have an opportunity to decrease labor costs as a percentage of revenue by simply cutting a shift or two from the schedule of a category of employee (chefs, wait staff or dishwashers) during slower times. Or, depending on how busy you are, a single high-performing waitperson may substitute for two newer, relatively inexperienced people without doubling the cost.

These may seem like minor adjustments, but they have the power to significantly and positively impact your profit margin.