Labor Cost in the Restaurant Industry
Labor cost is something every restaurant owner tries to control since it can directly affect your profit.
Belonging to an industry with a high turnover rate undoubtedly does nothing to help keep your Labor Costs low either.
The Bureau of Labor and Statistics showed that roughly 75% of employees left the restaurant industry in 2018. That’s a little over 7 out of 10 employees!
While there are plenty of resources out there aimed at helping you retain those employees, let’s be honest, most employees get burned out or chase new restaurants opening up for betting tips and opportunities.
So where does that leave you to help reduce your labor costs? Enter Automation!
Automation and Labor Costs
Recently, Ernst and Young performed a study analyzing and estimating the Labor Costs associated with Common HR functions.
The lowest employee count for the companies that were analyzed is 250. While you may not have that many employees, I’m sure the costs will still ring true, and possibly open your eyes!
If you are not automating your Payroll you are going to spend a lot of time manually recording information that takes up your time.
Most Payroll companies today have onboarding services that allow the employee to enter their information, reducing your labor cost and increasing the accuracy of the employee’s information.
Ernst and Young estimate that the labor cost for the information below is PER ENTRY!
- Recording I-9 Information 8.32
- Recording W-4 and other Tax form information 10.91
- Recording direct deposit information 9.78
*Cost Per Entry
Increase Your Profits
So, a sure-fire way to make an impact on your Prime Cost is to reduce your manual input when you can automate it!
After all, Labor Cost, even if you are the one who is performing these task, eat up a lot of profit and are the hardest to control.
Give yourself a surefire way to increase accuracy and take control back on your labor cost.
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