Seven Ways to Lower Restaurant Labor Cost

In about one week the restaurant industry went from paying overtime to employees because of a shortage of employees to skyrocketing unemployment rates. Although this tip does not directly address labor management during and through the pandemic, the principles to controlling labor costs are the same. And they are also incredibly important as restaurant owners manage uncertain sales volumes. 

Here are seven ways to reduce your labor costs and control them.

Number One: Check that your employees are not clocking in too soon. Every 15 minutes extra they add to their time is one step closer to overtime. If they don’t think you’re watching, employees will ride the clock. You have to pay attention to the process and establish a system. Managers should know what time somebody should be coming in and then ensuring they're not clocking in too early.

Number Two: Employees should be clocking out when you tell them. When you let people off early, either by request or necessity, make sure…