After spending most of my career in the restaurant business, I’ve learned that labor is one of those things that can keep a restaurant owner or general manager up at night.
We all know the feeling. Sales aren’t where we want them to be, labor is running high, and we start looking at the schedule to figure out where we can cut hours. I’ve been there. When you’re responsible for running a restaurant, you’re constantly trying to balance the numbers while making sure your guests are having a great experience and your team has what it needs to get the job done.
But I think sometimes we get so caught up in the labor percentage that we forget to look at the people behind it.
This past weekend, Jen and I got away for a wedding that was held at a brewery. Anytime I go somewhere in the hospitality business, I naturally pay attention to how things operate. It’s hard not to when you’ve spent so many years in this industry.
One of the things that stood out to me was how versatile the staff was and how well they worked together. You could see the teamwork, and it was a good reminder of just how important that is in our business.
It got me thinking about how I would approach labor if I were to start working at your restaurant today.
I Wouldn’t Immediately Start Cutting Hours
When labor is high, the first thing I want to do is understand why.
Are we scheduling too many people? Are we scheduling the wrong people at the wrong times? Are we seeing sales patterns that we haven't adjusted to? Or are we dealing with a productivity issue that could be fixed with better training and communication?
Those are very different problems, and they shouldn't all have the same solution.
I've seen how quickly cutting hours can backfire. You save a little money on the schedule, but now your servers are overwhelmed, food takes longer to get to the tables, managers are jumping in to cover positions, and the guest experience suffers.
Then you're dealing with a different problem altogether.
I'm not saying you shouldn't adjust your labor. Sometimes you absolutely have to. But before I start cutting, I want to understand what's happening in the operation.
I Would Make Cross-Training a Priority
Something I appreciated about the staff at the brewery this weekend was their versatility and their ability to work together.
That's something I want to see in every restaurant.
We all know that no two shifts are exactly alike. Someone calls out, a rush hits earlier than expected, or one part of the restaurant gets slammed while another slows down. That's the reality of this business.
When your employees are properly trained and understand how to help one another, those situations become much easier to manage.
I'm not talking about expecting one person to do three jobs for the price of one. I'm talking about building a team that understands the operation, communicates well, and can lend a hand when it makes sense.
If my food runners understand the flow of the dining room, my servers communicate with the kitchen, and my hosts understand how seating affects the entire floor, we're already in a better position.
That kind of teamwork doesn't happen overnight. It takes training, communication, and managers who lead by example.
I Would Look at Who Is Working, Not Just How Many
In my experience, having a full schedule doesn't automatically mean you have a strong shift.
I'd rather have a well-organized team that understands what it's doing than a schedule full of people who haven't been trained properly or don't know how to work together.
When I look at a schedule, I'm thinking about the business we're expecting, the experience of the people working, and where I need my strongest employees.
Who can handle a busy section? Who can help a newer employee? Who knows how to keep things moving when we're in the weeds?
Those things matter.
I'd also look at sales by day and hour, reservations, events, and historical trends to make sure I'm scheduling appropriately. If Tuesdays are consistently slow, the schedule should reflect that. If Friday nights are unpredictable, I want a plan for handling the rush without automatically putting too many people on the clock.
The goal is to have the right people in the right places at the right times.
I Would Expect My Managers to Lead the Way
This is a big one for me.
You can have great employees, but if your management team isn't communicating expectations and holding people accountable, the operation will struggle.
I want my managers to understand the labor numbers, but I also want them on the floor paying attention to what's happening.
Are people working efficiently? Is one department struggling while another has extra hands? Are we anticipating problems or waiting until something goes wrong?
And when the team is busy, are the managers helping create solutions?
The staff at the brewery reminded me that good teamwork makes a difference. As managers, we have to create an environment where that teamwork can happen.
That means recognizing employees who step up, training people to be more versatile, and making it clear that helping the team succeed is part of everyone's responsibility.
At the End of the Day, It's About Balance
I've spent a lot of years managing restaurants, and one thing I know is that there isn't a magic number that fixes every labor problem.
Every restaurant is different. Your volume, menu, service style, hours, and team all play a role in determining what your labor should look like.
But I would always start with the same questions.
Are we scheduling smart? Are we training our people? Are we getting the most out of the hours we're paying for? And are we creating a team that works together instead of everyone worrying only about their own job?
That weekend at the brewery was a nice reminder that some of the things that make a hospitality operation successful aren't complicated. Having versatile employees who work well together can make a real difference.
If I were to start working at your restaurant today, I wouldn't just be looking for ways to cut labor. I'd be looking for ways to build a better team and run a more efficient operation.
Because at the end of the day, labor isn't just a line on your P&L. It's the people who show up every day and make your restaurant what it is.
And when you get the people, the training, and the scheduling right, the numbers have a much better chance of falling into place.
That's how I'd approach it.
— Jason Sweet
Plate & Prosper Restaurant Consulting
We'd love to hear from other owners and operators: When labor starts running high, what's the first thing you look at?