A 20% revenue drop hits your labor costs hard. Most owners cling to their normal schedules while bleeding money. Smart operators cut labor strategically within 2-3 weeks to protect their margins.
Why adjusting schedules is crucial
Labor costs eat up your biggest chunk of expenses after ingredients. With a 20% revenue drop, your fixed costs (rent, insurance) stay put, but you control your labor spending.
💡 Example:
Restaurant with normal revenue €40,000/month:
- Revenue now: €32,000 (-€8,000)
- Labor costs were: €14,000 (35%)
- If you do nothing: €14,000 on €32,000 = 44%
You lose twice: less revenue AND wrong labor percentage.
Calculate your new staffing needs
For healthy margins, keep your labor cost percentage consistent. Most restaurants target 30-40% of revenue for staff costs.
💡 Calculation:
New revenue: €32,000
Target labor percentage: 35%
Maximum labor costs: €32,000 × 0.35 = €11,200
So you need to save €2,800 on staff.
Which hours can you cut
Not all hours hit your guests equally hard. Start with shifts that barely affect customer experience:
- Slow lunches: Run leaner service, chef handles expediting
- Late evenings: Kitchen closes earlier, move last orders up
- Monday/Tuesday: Skeleton crew all day or stay closed
- Prep time: Tighter scheduling, prep only what you need
⚠️ Heads up:
Never cut hours during peak times. Bad service kills the few customers you've got left.
Practical adjustments by role
Service: Fewer staff means bigger sections per server. Put your strongest players on the busiest shifts.
Kitchen: Drop one cook during slow periods. After managing kitchen operations for nearly a decade, I've seen head chefs successfully handle both cooking and expediting during quieter lunch services.
Dishwashing: Cross-train servers to help during dead periods or combine with prep tasks.
💡 Example schedule adjustment:
Was: 3 service + 2 kitchen during lunch
Now: 2 service + 1 kitchen during quiet lunches
Savings: 2 × 4 hours × €12 × 6 days = €576/week
Communication with your team
Tell your staff the truth about what's happening. Explain that temporary cuts keep the business alive. That beats unemployment checks.
Offer alternatives where you can: flexible scheduling, rotating shifts, or reduced hours with clear recovery expectations.
Monitor and adjust
Check weekly if your new schedule works. Watch for service warning signs: longer wait times, customer complaints, stressed-out staff.
If revenue stays flat after 2-3 months, consider bigger changes like menu adjustments or shortened operating hours.
How do you adjust your schedule when revenue drops?
Calculate your new labor budget
Take your new revenue × desired labor percentage (30-40%). This is your maximum labor costs. Subtract your current costs to see how much you need to save.
Identify the quietest times
Analyze which days and times have the fewest visitors. Start cutting hours there. Keep your busiest times fully staffed.
Adjust the schedule by role
Reduce service staff during quiet lunches, have the chef do expediting when it's slow, and combine tasks where possible. Communicate clearly with your team about the temporary adjustments.
✨ Pro tip
Track your revenue-per-labor-hour for each shift over the next 4 weeks. You'll spot exactly which time slots drain money and which ones you can't afford to touch.
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 percentage of my revenue should go to staff?
Most restaurants target 30-40% of revenue for labor costs. Fine dining can push 45%, while fast-casual operations often run 25-35%.
Can I lay off staff due to temporary revenue drop?
Layoffs for business reasons are legal but expensive and time-consuming. Try cutting hours and temporary measures first. Get legal advice before making permanent moves.
What if my service quality drops with fewer staff?
Monitor this weekly through customer feedback and wait times. Poor service drives away remaining customers and makes your revenue problem worse. Better to cut operating hours than deliver terrible service.
How long should I wait before expanding the schedule again?
Wait until revenue stabilizes at previous levels for at least 8 weeks. Then expand gradually, starting with your busiest shifts rather than adding hours everywhere at once.
Should I adjust my opening hours instead of cutting staff?
If certain days or time periods consistently run nearly empty, closing completely makes more sense. You're better off packed 5 days than half-empty 7 days.
How do I decide which specific shifts to cut first?
Track revenue per labor hour for each shift over 2-3 weeks. Cut the shifts with the lowest revenue-to-labor ratios first, typically slow weekday lunches or very late evening hours.
📚 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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