Managing Labor Costs: Making Data Driven Decisions

Managing Labor CostsIn our last post, we discussed some of the major ways that you can save money and protect your restaurant’s bottom line. Managing labor costs is at the forefront of almost every restaurant owner’s priorities, and what better way to do so than to make data-driven decisions. In this article, we’re going to explore how you can use your restaurant’s real data to make labor and money saving changes. Next, protect your operation with a comprehensive Pigeon Forge Restaurant Insurance package.

Learn what people love about your restaurant.

With CRM software, you can track customers’ orders, what they buy, and how often they come. This can also track who spends the most money in your restaurant and how frequently they return. With this information, you can create specific ads and email offers targeted to get them coming back for more.

Keep an eye on productivity.

How is labor translating into sales? Labor cost percentage is a very important metric to watch, through detailed analysis of cover counts, revenue center analysis, and productivity by server or cashier. With this information, restaurant owners can make data-driven decisions about whether there are too many people or too few people working at a given time, explains Toast. What’s more, you can also view sales exception reports, which show the number of voids, discounts, or refunds within a specific timeframe, and determine whether your team might need an extra training session or a reminder during their pre-shift meeting to get back onto track, explains the article.

Track your menu’s popularity.

Controlling your costs by using data can extend to food expenses. Track menu item popularity, determine the best-selling dish, and evaluate its profitability. You can even determine how your menu does among certain times of days during the week. Use the data you collect to benefit you and make purchasing decisions to accommodate their popularity to reduce buying too little or too much of any one item.

About Barnes Insurance Agency

From potential workplace accidents to problematic patrons, Knox County restaurants face many challenges that can jeopardize the operation of the business. Even an array of outside factors such as severe weather, supply interruption, downed utilities, food recalls, and more can cause huge financial complications for a local business. At Barnes Insurance Agency, we understand the countless challenges you and your eatery face, and can help you insure against these and many other types of risks. Our Knoxville restaurant insurance coverage is fully customizable to fit the needs of your operation. We offer complete business insurance solutions for Knox County restaurants of all sizes, including those owned and operated by hotels and resorts. To find out more about how we can help protect your restaurant, give us a call today at (866) 733-5424. 

 

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