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Prime Costs: Understanding and Application for Restaurants

Synergy Suite

Labor costs can be further divided into two main categories: Back-of-House (BOH) Labor: This includes kitchen staff, such as chefs, cooks, and dishwashers, who are responsible for food preparation and maintaining kitchen cleanliness. Effective portion control requires staff training to maintain accuracy and consistency in serving sizes.

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Worried About High Restaurant Labor Costs? Here are 8 Strategies Saudi Restaurants Can Use to Control Them

The Restaurant Times

While restaurants should readily prepare for the next hospitality crisis, here are some effective ways to reduce restaurant labor costs in Saudi Arabia that one can implement progressively. Cross Train The Employees. Cross-training exercises ensure that all the employees are trained to handle multiple tasks and roles.

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

Synergy Suite

Common fixed costs in the restaurant industry include: Rent: Your monthly lease or rental payments for your restaurant space. Salaries and Wages: The salaries of your staff, including chefs, servers, and managerial roles. Insurance: Costs for property and liability insurance to protect your business.

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Inventory Turnover Ratio for Restaurants: Maximizing Inventory Efficiency

Synergy Suite

Cost Reduction One of the most direct benefits of an improved inventory turnover ratio is the reduction in holding costs. Lower inventory turnover ratio often results in higher holding costs as your capital is tied up in inventory that isn’t being sold quickly.