How To Calculate Labour Cost For Restaurants & Small Businesses 2022 | Restaurant Management
ฝัง
- เผยแพร่เมื่อ 26 ก.ค. 2024
- Did you know that labour is one of three big costs in a restaurant business? Today I'll show you how to calculate labour cost in restaurants...
⚠️ Subscribe to Wilson's channel - swiy.io/WKLYT
_________________________
🚀 FREE COURSE ON HOW TO START A FOOD BUSINESS
[Playlist] Foodiepreneur’s Finest Program - swiy.co/start-FPF-program
🚀 FREE COURSE ON HOW TO START A RESTAURANT BUSINESS
[Playlist] Profitable Restaurant Owner’s Academy - swiy.co/Start-PRO-Academy
_________________________
👀 ABOUT THIS VIDEO
Labour takes a huge chunk of money for restaurant businesses and small businesses. Which is why it is important to know how to calculate labor cost so you can see exactly how much it is taking from the pie.
But before yo even calculate your labour cost, you need to know what labour cost is. Many people make the mistake of just thinking it is how much you pay someone per hour or salary...but it is more. You need to include bonuses, payroll taxes, remittance, benefits, meals, uniform, training, and more. A lot goes into the cost of a staff, which is WHY staffing and retaining good staff is so important.
There are generally two ways to calculate labour cost in restaurants:
1. Labour as % of sales OR
2. Labour as % of total operating costs
Regardless of which you choose (I prefer method 1), the key is knowing how your labour cost compares to industry standards and benchmarks. Because if you're OVER the standard, it may mean there are things you or your business is not being efficient on, which is driving your labour cost UP. But you won't know any of this without calculating your labour cost and knowing the industry standards. Only then you'll be able to take out the magnifying glass and see where you can make changes.
So if you're a restaurant owner, restaurant manager, food entrepreneur, small business owner, and are looking to learn how to calculate labor cost and make your business more profitable, or want to learn how to start a restaurant or how to open a successful restaurant, keep on watching!
_________________________
📚 RESOURCES
🛠 Community & Tools
[EQUIPMENT] Tools & software I recommend using -
learnnow.wilsonklee.com/toolsYT
[MARKETING] Learn marketing tricks that McDonalds & Starbucks use - gumroad.com/a/691410035?...
_________________________
👤 ABOUT WILSON:
I’m Wilson, your new restaurant business partner. I’m here to help turn your food and beverage concept into a reality with expert tips & tricks for success.
My videos are based on years spent in the industry building multi-million dollar businesses, including my own international dessert chain (720sweets.com/) with locations spanning the globe. Since my franchise was acquired (2020) it’s been my mission to share this knowledge with people like you who have great ideas, but just can’t seem to break through. If I did it all with no experience, so can you. I know firsthand the struggles and mistakes most entrepreneurs make, and want to show you exactly how to avoid them.
I’ve helped hundreds of restaurant owners and entrepreneurs create explosive Food & Beverage businesses. You don’t have to take my word for it. I’ve been awarded Top 30 Under 30, Young Entrepreneur of the Year, Top 10 Emerging Entrepreneurs, and recently a Forbes Business Council Member.
Subscribe to see what everyone’s talking about and learn how you can achieve the same life-changing results.
Find more great resources, check out www.wilsonklee.com/
_________________________
📩 CONNECT WITH WILSON:
Instagram: / wilsonklee
Facebook: / wilsonkinglee
Collabs/Sponsorship: hello@wilsonklee.com
Send items to: 18th Floor 450 SW Marine Drive, Vancouver BC V5X0C3 Canada
#wilsonklee #howtocalculatelaborcost #restaurantmanagement
![คุณอาเรียโต๊ะข้างๆ พูดรัสเซียหวานใส่ซะหัวใจจะวาย ตอนที่ 4 [ซับไทย] 【Ani-One Thailand】](http://i.ytimg.com/vi/_vK_cden2f8/mqdefault.jpg)
👉 Learn how to turn your food idea into an online food business in 30 - 60 days (Free Masterclass) - swiy.io/fpf-masterclass-yt
👊 Learn how to turn your food idea into a profitable restaurant business (Free Masterclass) - swiy.io/pro-mc-yt
Wilson K Lee - How To Open A Restaurant / F&B Shop
Thank you so much for this.
Thanks for stopping by!
Thank you very much Wilson , you are God sent, you educate with precision and simplicity , thank you.
thank you very much for the education content!)
Awesome breakdown!! Keep the videos coming!
Will do!
Hello Wilson... Thanks 🌎 I am looking forward to having a wonderful café...The Concept is clear...l need to learn more in other areas...
Very nice video 🌎 Thanks Wilson. Greetings from Colombia. The Venezuelan Immigrant writer, ecologist, entrepreneur 🇻🇪
Great job!!
Thank you! Cheers!
Thank you
So helpful,, every single time in learn new things ❤️❤️ I’m about to open a restaurant in a few month thank you for all the help ,, merci 🙏 beaucoup from Montréal
You are so welcome!
Hi Will, really like your videos and thank you for the time and efforts you are putting to educating your viewer..... RESQUEST: could you make a video HOW TO CALCULATE MENU PRICES/PRODUCT PRICE FOR TAKEAWAYS/RESTUARENT? Thank you :)
Really appreciate these helpful videos Wilson! These are gold!
Hey Jim thanks for stopping by and watching my video! Glad to hear you found it helpful! Let me know if you have any questions or you can ask them whenever you want in our FB group.
great tip
Thanks for tuning in!
Thank you so much for these tips . It is greatly appreciated
Glad you like it! Make sure to join the FB group if you're not part of it already :)
Super helpful video
Glad it was helpful for you Addy!
Well done
Thanks Donald!
Wilson, first thanks for your efforts and amazing tips in general and especially for this video. I have one question and how to calculate labor cost for someone who wants to open first restaurant.is it correct if you calculate your labor cost first and get the monthly target according to those 30%? Just to know approximately how much profit I need to make to have labor cost not bigger than 30%. I hope I can get your answer, it would be very helpful for me. Thanks and cheers
Nice video bro.. Even I saw ur cogs video.. Still am confused little bit.. I need u to help me out.. Can u make a video in which u take a cake or sweet and explain step by step?. Like 1st sort out ingredients then it's price per unit,rawmaterial cost, labour cost till selling price and profit(in ur style the amount we put in our pocket).. With proper step by step example.. It will be useful for me and for many..
Thanks for the explanation. So good! But how about the operational cost to produce the products? For example, water for the products, water for washing & cleaning, the gas for cooking / boiling, electricity to produce, to turn on the lamp, the wifi, the POS at cashier, etc. I think it's very important as well to be counted in the calculating the food cost. Hope that you / anyone can explain this. Really appreciate.
You already said its operation expenses and its not included to the food cost ,however it will be on the p & l statement
Food cost is only the food used to creat a dish such like ( veg, protein, spices,dairy etc )
Hope that was helpful
Sir,why do we calculate by Year and not by each month?
2nd do we compile all the cost of each labour and divided by the Plan Sale/Actual Sale?
3rd Question How can i Calculate on How many Staff do i need each day based on my Plan Sales/Last months Actual Sale? This is for scheduling
Sir can I request ? Can you show the proper format of labour cost and all content of labour cost such Bonuses,benefits etc, and how to indicate this in worksheet one by one . One more how about the Gas and water where is it include ? Thank you
As from my research that I understood. Utilities also belong to the labor cost as all things that you need to pay for running a restaurant. Not including food only
how do I calculate the BOH labor cost per 100 meals?
Ok
iam a gm at dominos my labour is 3.0% o some times is 5.0% how can I fix it so I could get more bonus
It would be nice, if you told us what our labor cost should be at. Also, the music in the background is distracting, makes it difficult to hear you sometimes
Wow, How do you stay in business with almost 30% labor cost? I run my restaurant at 12% to 15% labor and 26% to 28% food cost
The music is to loud!
Jeffery Pfeffer 1998 The Human Equation - making profit by putting people first
100000%
Thanks for sharing
Please speak slowly
I will try my best!
You can’t concentrate with that music
Thanks for the feedback!
You only make 200k on a million dollar revenue? That’s insane
A big dislike