PROTECTING THE BOTTOM LINE

In the dynamic world of restaurant operations, labor expenses are one of the most significant and complex costs. These expenses can be broadly categorized into several key areas that we will explore in detail: associate or crew labor, which encompasses the frontline staff working directly with customers; management labor, including the roles of associate general managers (GM) and general managers, who oversee daily operations and strategic planning; and training labor, an essential investment in developing the skills and competencies of the restaurant’s team. Beyond these primary labor categories, we will also delve into other vital costs typically considered within the labor Profit & Loss (P&L) discussion, such as payroll taxes and employee benefits. Understanding and managing these various elements of labor expense is crucial for maintaining efficiency, quality, and profitability in the restaurant industry.