Smart scheduling cuts labor costs by 10-20% in most restaurants. Poor staffing during slow periods drains profits fast. Here's how to calculate your potential savings from a more strategic approach.
Why scheduling impacts your profit
Labor represents your second-largest expense after food costs. Most restaurants see labor eating up 25-35% of revenue. But a schedule that ignores your actual traffic patterns? That's money walking straight out the door.
💡 Example:
Restaurant with €50,000 monthly revenue:
- Labor costs: 30% = €15,000/month
- 10% savings = €1,500/month
- Per year: €18,000 less in labor costs
Step 1: Measure your current labor costs per hour
You'll need these numbers for an accurate picture:
- Hourly wage per position (including employer contributions)
- Hours worked daily/weekly per position
- Revenue per hour to identify peak times
⚠️ Important:
Factor in total hourly costs including employer contributions (roughly 130% of gross wages).
Step 2: Analyze your busy periods by time slot
Track revenue patterns across the past month. Most restaurants follow predictable rhythms:
- Slow mornings (10:00-12:00)
- Lunch surge (12:00-14:00)
- Afternoon lull (14:00-17:00)
- Dinner rush (18:00-22:00)
💡 Example busy period analysis:
Tuesday between 14:00-17:00:
- Average revenue: €45/hour
- Staff scheduled: 3 people
- Labor costs: €75/hour (3 × €25)
- Labor cost percentage: 167% of revenue!
Step 3: Calculate the possible savings
After managing kitchen operations for nearly a decade, I've seen how small scheduling tweaks create massive savings. Here's the math:
Weekly savings formula:
Reduced hours × Hourly wage × Days per week
💡 Calculation example:
Send 1 person home 3 hours early on 5 days:
- Daily savings: 3 hours × €25 = €75
- Weekly total: €75 × 5 days = €375
- Monthly impact: €375 × 4.33 = €1,624
- Annual savings: €1,624 × 12 = €19,488
Step 4: Check that your service level stays good
Cost-cutting can't compromise guest experience. Monitor these metrics:
- Wait times stay reasonable
- Food quality remains consistent
- Staff stress levels don't spike
- Peak period coverage stays adequate
Tools that help with scheduling
A food cost calculator like KitchenNmbrs tracks daily labor expenses against revenue. You'll spot overstaffing patterns immediately.
How do you calculate labor cost savings? (step by step)
Gather your current labor data
Write down the hourly wage per position (including employer contributions) and add up the total number of hours per week. Look at at least 4 weeks to get a reliable average.
Analyze your busy periods by time slot
Measure your revenue per hour and compare it with your staff levels. Look for moments where your labor cost percentage exceeds 35% - that's where you can probably save.
Calculate the savings
Multiply the number of hours you can save by the hourly wage and the number of days per week. Calculate this through to monthly and yearly basis for total savings potential.
✨ Pro tip
Compare your hourly revenue against staffing costs for 6 consecutive weeks. You'll discover exactly which 4-hour blocks are bleeding money through overstaffing.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
What's a healthy labor cost percentage?
Restaurants should target 25-35% of revenue for labor costs. Anything above 40% typically signals overstaffing issues that need immediate attention.
How do I prevent understaffing?
Build in buffers for unexpected rushes. Start by cutting just 1 hour per person and closely monitor service quality before making deeper cuts.
Should I include employer contributions in calculations?
Absolutely. Employer contributions add roughly 30% to gross wages. So a €20/hour employee actually costs you €26/hour total.
Can using junior staff during slow periods save money?
Yes, strategically deploying less expensive team members during off-peak hours cuts costs. Just ensure they can maintain your quality standards.
How often should I review my schedule?
Monthly reviews work well for most restaurants. Seasonal changes, local events, and customer behavior shifts can alter your peak patterns significantly.
What if my labor costs vary wildly between days?
This usually indicates inconsistent scheduling practices. Track daily patterns for 6-8 weeks to identify which days need different staffing levels.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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