Hire the Right Staff to Reduce Restaurant Labor Costs

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Hiring staff is one of the most important decisions you will make as a restaurant manager. A wrong decision can cost far more than wages in the long-term, affecting your restaurant in a number of ways.

Hire once, hire right, retain.

Look For More

Remember, your business success is based upon your success at gathering together a group of workers with different skills and experiences to produce a quality product. This is dependent on you finding the right person to fill the job. Look beyond the basic skills for a person who will be the face of your restaurant/bar – and will work well with your team.

Hire On Tasks, Not On Talk

Before you hire an employee – Keep in mind the tasks the employee must accomplish. Is this person suited to talking to important customers all day or doing a lot of back office tasks? What skills does this job require and what skills can a potential employee bring?

Keep in mind, the cost of employing a worker is far greater than his or her net pay, regardless of the worker being salaried or hourly.
Hiring the Right Staff


It Is Never The Right Time To Hire The Wrong Person

According to the CIPD, the average cost of hiring the wrong person is €11,000 ($12,500). Resist the temptation to “panic hire.” Don’t, in desperation, hire the first person you interview just because you have a role to fill urgently. Not only will they cost you in the long run, they are a drain on your current employees and morale in the short-term. Additionally, you will have to take more time away from your business to fill the role again in the near future.

Your Current Team Has Great Potential

Try to promote from within your own business. Develop a succession plan for your business if you have not done so already. Identify high-performing employees early and nurture their career. Internal promotions act as an incentive for your whole team as they see that good work is well rewarded.

Ask Yourself

What % of your budget comes from agency workers?

What % of your budget comes from overtime?

What is your labor/sales ratio for every day… better still by the hour?

Instead of looking to employment agencies, ask your employees if they can recommend anyone. They are ideally placed to know the kind of person and skills that will be needed for the new position.

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