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Labor Cost Percentage for Restaurants: The Ins and Outs

Synergy Suite

When you’re looking for a good labor cost percentage, lower is better. If for example your labor cost percentage is 50%, things probably aren’t going too well financially. Track labor costs as a percentage of revenue. Efficient staff scheduling and management can help optimize this metric.

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How to Drastically Cut Expenses in Your Restaurant (and Stay Profitable During COVID-19)

7 Shifts

Please note thought: this article is meant to provide information only and is not a substitute for any professional advice you may receive from an accountant, lawyer, HR, or other professional. Evaluate your restaurant scheduling practices to see if you are consistently over-budgeting on labor needs based on your sales. Good luck!

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The Break-Even Point: A Key to Restaurant Financial Success

Synergy Suite

Your fixed costs are covered, and your variable costs are accounted for with each dish or meal you serve. Focus on reducing both fixed and variable costs: Food Cost Control: Monitor your food inventory, reduce waste, negotiate with suppliers, and consider menu engineering to highlight high-margin items.

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