Invest in Employee Training to Control Restaurant Labor Cost

Are your labor costs spiraling out of control and eating into your profits? Do you feel overwhelmed trying to keep these expenses in check? You’re not alone, and I’m here to help. Welcome to the seventh and final tip in this special seven-part series, where I tackle labor cost challenges head-on and give you the tools to regain control. Each part of the series covers an essential step to help you manage and reduce your labor cost effectively, whether it’s auditing timekeeping, cutting down on unnecessary overtime, or optimizing your schedule. We've got you covered. Let's solve this problem together, one step at a time. Let’s dive into today’s tip and take the seventh step towards controlling your labor costs.

Step seven is focused on your team itself. Are your team members truly trained and ready to handle the rush? An untrained team is inefficient and takes longer to do things, potentially requiring more employees to manage busy times. For instance, instead of needing a set of five properly trained cooks, you might need seven; instead of needing four really efficient servers, you might need seven. Your team's efficiency directly affects your labor costs.

Make selection and training a priority

Poorly performing staff can cost you more than just labor dollars; they can cost you customers, products and money. Investing in your team yields benefits in both performance and customer satisfaction. Here’s how to do it:

• The selection process: It starts with selecting the right people. Hiring the wrong people doesn’t help, so ensure you have a robust selection process. Choose individuals who fit your company culture, have the aptitude to learn and possess the necessary skills for the job. It's better to be short-staffed than to have the wrong people on your team.
• Training programs: A great training program is crucial. Proper training reduces costs overall and allows you to do more with less. For example, a new server might ring up $500 in sales and be slow, but a seasoned server can ring up $1,000, $2,000, or even $3,000 in a shift. This efficiency comes from repetition and familiarity with the job, much like driving a car becomes second nature.
• Training should ensure that employees know their job, how to do it, how well it should be done, and by when. Without this knowledge, they struggle and make repeated mistakes, becoming inefficient.
• Continuous training and certification: In the back of the house, continuous training is essential. For example, start a cook as a fry cook, and once they’re trained and certified, move them to sandwiches and salads, offering a small raise. Then, train them on sauté, and so on. Eventually, an employee might go from earning $15 an hour to $18 an hour, but their increased efficiency means you need fewer cooks overall, reducing your labor costs.

Your plan to reduce labor cost must include selection and training as both are critical to sales and labor cost.

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