What is the average overhead for a restaurant

Skill Business Culture Systems. Stage Dreaming Opening Operating. View All Financial Resources. View All Growth Resources. Brand Expansion Commissary Expansion. Franchising Increasing Sales Makeover - Remodel.

Volume Purchasing. View All Leadership Resources. Accountability Coaching Company Values Culture. Excellence Hospitality Incentives Management. Mission Statements Teambuilding. View All Marketing Resources. In case they are not willing to cooperate, you can always sublease a part of your venue and make money that way. The vast majority of modern dishwashers, stoves, and other appliances is already designed to save money in the long run.

Some of them contain smart technologies that save a lot of power, thus reducing your bills and overhead. Other appliances are equipped with components that save water and use smart timers to save power. If you want to learn more, read our other articles! For more information, get in touch with Glimpse , today. Glimpse provides an innovative loss prevention technology that will help increase the financial profitability of your restaurant or bar. Our unique software captures drink movement across the bar counters through video cameras and matches all sales to the POS data.

Enter your phone number: What's the best time to call? First of all, what is labor cost? You might be thinking it is just your hourly wages and salaried employees, but there is more to it. Labor costs are anything that is labor-related and include:. With that being said, every establishment is different and sometimes you require more staff on hand than usual that might increase your costs and other times you are able to cut staff to reduce labor costs.

In order to determine what your restaurant is running at for labor costs you will need to calculate labor costs as a percentage. The first thing you will want to do is add up the cost from the different cost groups. For example let's say your labor costs are as follows for a given year:. Looking at the total labor costs doesn't tell us much until we convert it to a percentage of sales. There are two ways to go about this.

This first is by calculating labor costs as a percentage of total sales and the other as a percentage of operating costs. First you will want to collect your total revenue data from your income statement or POS system report. Next, you will want to calculate your total labor costs by adding up all the categories. You will then use the formula and divide labor cost by revenue. The second way to calculate labor costs is as a percentage of operating costs.

You would use the same process as above, but rather than using revenue you would use operating costs. If you see variances or increases in your percentage you will want to take additional steps to control and lower those costs like finding a different distributor or cutting staff when necessary. Jordan is a marketing intern at Backbar and a business student studying marketing.