Most restaurant owners think seasonal peaks automatically mean bigger profits. But 40% more staff can push your labor costs from 30% to 42% of revenue, potentially wiping out those extra earnings. The reality is you need a calculated approach to make seasonal hiring profitable.
Calculate the impact on your labor costs
You can't make smart decisions without knowing what 40% extra staff does to your bottom line. Labor costs typically rank as your second-largest expense after ingredients.
💡 Example:
Restaurant with normal staffing:
- Monthly revenue: €50,000
- Labor costs: €15,000 (30%)
- Number of employees: 8 FTE
With 40% more staff:
- Extra labor costs: €6,000
- Total labor costs: €21,000
- Percentage of revenue: 42%
That 12 percentage point jump from 30% to 42% cuts straight into your profit margins. If you normally run an 8% net margin, you're now operating at a loss.
Three strategies to offset this
You've got three paths to balance those extra labor costs:
- Raise prices: Temporary seasonal pricing
- Work more efficiently: Limited menu, more prep work
- Accept lower margins: If absolute profit in euros still increases
Option 1: Introduce seasonal pricing
Plenty of hospitality businesses bump up prices during busy periods. Guests often expect this and won't be surprised.
💡 Calculation:
To offset 12 percentage points of extra labor costs:
- Dish normally: €24.00
- Seasonal price: €27.00 (+12.5%)
- Or: smaller portions for the same price
⚠️ Note:
Communicate seasonal pricing clearly. Put it on your website and at the entrance. Surprises at the register irritate guests.
Option 2: Become operationally more efficient
More staff doesn't automatically translate to proportional productivity gains. You can manage this smartly:
- Limited menu: Fewer dishes = faster preparation
- More mise-en-place: Prep during quiet hours
- Buffet elements: Salads, appetizers that guests serve themselves
- Semi-convenience: Temporarily use more ready-made components
💡 Example:
Normal menu: 25 dishes
Seasonal menu: 15 dishes
Result: 30% faster preparation per dish, despite more traffic.
Option 3: Accept lower margins (if absolute profit increases)
Sometimes it makes sense to temporarily sacrifice margin percentage if your absolute profit in euros grows.
💡 Calculation example:
Normal month:
- Revenue: €50,000
- Net margin: 8% = €4,000 profit
Seasonal month with 60% more revenue:
- Revenue: €80,000
- Net margin: 4% = €3,200 profit
Loss: €800, but you build customer loyalty for the whole year.
Recognizing the breaking point
From tracking this across dozens of restaurants, there's a clear point where 40% more staff becomes financially destructive. Watch for these warning signs:
- Your net margin drops below 2%
- Your absolute profit in euros decreases
- Quality suffers under the pressure
- Your team becomes overstressed
At that point, it's smarter to cap capacity: refuse reservations, reduce opening hours, or maintain a waitlist.
Plan your seasonal staff smartly
If you decide to bring on extra staff:
- Temporary contracts: Flexibility after the season
- Students: Often available in summer/winter
- On-call staff: Only deploy during peak times
- Cross-training: Teach existing staff more tasks
⚠️ Note:
Always calculate all wage costs: salary + social contributions + vacation pay. In the Netherlands, you're looking at roughly 130-140% of gross salary.
Monitor your numbers weekly
During seasonal peaks, your financials shift rapidly. Check these metrics weekly:
- Labor costs as a percentage of revenue
- Revenue per employee per shift
- Food cost (more traffic = more mistakes)
- Absolute profit in euros
Tools like KitchenNmbrs display these numbers in one dashboard, eliminating manual calculations. This lets you course-correct before the season ends.
How do you calculate the impact of 40% extra staff?
Calculate your current labor cost percentage
Divide your monthly wage costs (including social contributions) by your monthly revenue. For example: €15,000 in wages on €50,000 revenue = 30% labor costs.
Calculate the extra labor costs
Multiply your current labor costs by 1.4 (40% extra). In the example: €15,000 × 1.4 = €21,000. The difference (€6,000) is your extra cost.
Check if your revenue compensates for this
If your revenue rises by less than 40%, your labor cost percentage will be higher. Calculate your new net margin and decide if this is acceptable.
✨ Pro tip
Run financial projections for 20%, 40%, and 60% revenue increases before your season starts. This gives you predetermined hiring thresholds so you can scale staff up or down within 48 hours based on actual booking patterns.
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
Can I lay off staff during the season if things go badly?
With temporary contracts or on-call staff, yes. With permanent contracts, you need a dismissal procedure. So plan ahead with flexible contract types.
How much can I raise my prices during a seasonal peak?
That depends on your location and competition. 10-15% is often acceptable to guests. Just communicate it clearly as 'seasonal pricing'.
What if my food cost rises due to the extra traffic?
More traffic often means more mistakes and waste. Keep a close eye on your food cost during the season and train your temporary staff well on portion sizes.
Is it better to refuse reservations than hire expensive staff?
If your net margin drops below 2%, it can indeed be better to limit capacity. You'll keep more profit and your quality stays good.
How do I quickly train new seasonal staff?
Focus on the basics: 3-4 most popular dishes, safety rules, and the register. Have experienced staff act as a buddy during the first week.
Should I offer overtime to existing staff instead of hiring new people?
Overtime costs 150% of regular wages but avoids training time and hiring costs. Calculate both scenarios - sometimes overtime for 2-3 weeks costs less than onboarding new staff.
📚 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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