Question

Labor has replaced food as the most costly expense of many restaurants. What can restaurant managers do to control labor costs without sacrificing quality standards? In addition, identify and discuss two technologies that managers can use to control labor costs.

Answer 1

Solution:

Labor is a cost which can be paid off heavily by restaurant managers if not managed properly. Poor labor management can lead to permanent brand dilution of a restaurant and hence having properly trained labor is of at most important for any restaurant.

To control labor costs it is required that one must invest into the training of labors on a regular basis so that the labor has the ownership feeling of the restaurant and take the decisions which ultimately affect the restaurant in a positive way. Another way could be to attach the labor pay to the number of customer delights from the restaurant. This will allow the labors to take utmost care of their customer and give them the best experience that is possible and hence delighting the customers. These are some of the many ways which can be implemented to reduce the cost of labor in a restaurant.

The technologies which can be used in a restaurant can be in the areas of back staff who are involved in dishwashing work which can be done using a single operator with the help of advanced equipment. The use of robotics is not uncommon in today' restaurant operations leading to a very high ROI of those technologies. These technologies do take care of repetitive tasks and restaurant employees can better focus on delighting customer than on such repetitive work.